Africa-Press – Mozambique. The reference interest rate for lending in Mozambique will fall again in January by 0.10 percentage points to 15.70%, the Mozambican Banking Association (AMB) announced yesterday.
Since January 2024, the rate, known as the ‘prime rate’, has been gradually declining after six consecutive months at a peak of 24.1%.
Fluctuations in the ‘prime rate’ are linked to the monetary policy interest rate (the MIMO rate, which influences the formula used to calculate the ‘prime rate’) set by the central bank to control inflation. In August, it fell to 17.20% and in September to 16.5%, remaining unchanged in October by decision of the AMB, despite the fact that days earlier, on 29 September, the Monetary Policy Committee (CPMO) of the Bank of Mozambique had cut the MIMO monetary policy rate for the tenth consecutive time, by 0.50 percentage points, to 9.75%.
In November, the AMB cut the interest rate to 16%, in December to 15.80% and in January to 15.70%.
Previously, on 14 November, the Bank of Mozambique cut the MIMO monetary policy interest rate for the 11th consecutive time by 0.25 percentage points to 9.5%, despite concerns over delays in the payment of public debt.
“This modest reduction reflects the worsening of risks and uncertainties associated with inflation projections, with particular emphasis on delays in the payment of domestic public debt instruments by the State. Inflation prospects remain in single digits in the medium term. In October 2025, annual inflation stood at 4.8% after 4.9% in September,” central bank governor Rogério Zandamela announced at the time, following the last CPMO meeting of 2025.
Mozambique’s benchmark interest rate had been fixed at 17.25% since September 2022, following central bank intervention, which then began successive cuts from 31 January 2024, when it reduced the rate to 16.5%. In March last year, the Bank of Mozambique cut it to 15.75%, with further reductions at every subsequent meeting, until it reached 9.75% in September and 9.5% in November.
The CPMO meets every two months, and the next meeting is scheduled for 28 January 2026.
