On Wednesday, Mozambique’s central bank lowered its main interest rate for the fourth consecutive monetary policy meeting, citing a favorable inflation outlook.
The MIMO rate was reduced to 14.25% from 15.00%, marking a consistent 75-basis-point decrease.
Bank of Mozambique Governor Rogério Zandamela informed the media that inflation is expected to stay in single digits over the medium term. He also hinted at the possibility of further rate cuts in the future.
Zandamela explained that the pace and scale of future rate adjustments would be influenced by inflation expectations and the associated risks and uncertainties.
In June, Mozambique’s inflation rate slightly decreased to 3.04% year-on-year from 3.07% in May, according to data from the national statistics agency.
The central bank’s ongoing rate cuts reflect its commitment to managing inflation and supporting economic stability in the country.