FX.co ★ Mozambique Holds Key Rate Unchanged for 2nd Meeting

The Bank of Mozambique kept its key MIMO interest rate unchanged at 9.25% in May 2026, maintaining it at the lowest level since December 2015 and marking a second consecutive pause in monetary tightening. The decision reflects persistently high uncertainty regarding the duration of the conflict in the Middle East and its potential impact on supply chains, as well as on international and domestic fuel and food prices. Mozambique’s annual inflation rate rose for the third consecutive month, reaching a six-month high of 4.41% in April 2026. Inflation is expected to accelerate in the short to medium term and could potentially reach double digits, depending on how the conflict evolves. At the same time, the Monetary Policy Committee decided to raise the reserve requirement ratio for liabilities in domestic currency from 29% to 39%, in an effort to absorb excess liquidity in the banking system that could otherwise fuel additional inflationary pressures. The reserve requirement ratio for foreign currency liabilities was set at 29.5%.