FX.co ★ Mozambique Cuts Key Policy Rate Further to 11%

The Central Bank of Mozambique reduced its key MIMO interest rate by 75 basis points, setting it at 11%, as announced on May 30, 2025. This marks the ninth consecutive rate cut. The decision is largely influenced by the stabilization of inflation expectations, which are forecasted to remain in single digits over the medium term. This outlook is bolstered by favorable trends in international prices for goods and services. However, the economic landscape continues to be influenced by substantial domestic risks and uncertainties affecting forecasts. Mozambique's annual inflation rate decreased to 3.99% in April 2025, down from a nearly 18-month peak of 4.77% in the previous month. This drop signifies a reversal in the inflationary trend that emerged following the electoral unrest in October.