The Central Bank of Mozambique left its benchmark MIMO interest rate unchanged at 12.75% during its December 2019 meeting, saying that military instability in the central and northern areas of the country and the higher likelihood of climatic shocks continues to pose elevated risks to the inflation outlook. However, policymakers underscored that inflation is expected to remain low in the medium-term, despite the recent uptick in prices. The economy is seen recovering from 2020, though below its potential, supported by post-cyclones reconstruction, the settlement of state debts and the implementation of projects in the natural gas sector. The Committee also noted that government debt fell slightly since the previous meeting and the country's foreign reserves stood at comfortable levels.

Interest Rate in Mozambique averaged 13.29 percent from 2009 until 2019, reaching an all time high of 23.25 percent in October of 2016 and a record low of 7.50 percent in November of 2014. This page provides - Mozambique Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Interest Rate in Mozambique is expected to be 12.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Mozambique to stand at 11.25 in 12 months time. In the long-term, the Mozambique Interest Rate is projected to trend around 10.00 percent in 2020, according to our econometric models.


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Mozambique Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
12.75 12.75 23.25 7.50 2009 - 2019 percent Daily

Calendar GMT Actual Previous Consensus TEForecast
2019-06-19 04:30 PM 13.25% 14.25% 14.25%
2019-08-14 02:15 PM 12.75% 13.25% 13.25%
2019-10-31 01:00 PM 12.75% 12.75% 12.25%
2019-12-12 01:40 PM 12.75% 12.75% 12.75%
2020-02-27 01:00 PM 12.75% 12.25%


News Stream
2019-10-31
Mozambique Holds Key Interest Rate at 12.75%
The Central Bank of Mozambique left its benchmark MIMO interest rate unchanged at 12.75 percent during its October meeting, after a 50 bps cut in the previous session, saying that military instability in the central and northern areas of the country, climate shocks and global trade tensions pose serious risks to the inflation outlook. Still, policymakers noted that current projections point to a low inflation in the medium-term, supported by currency stability, while the economy is seen recovering from 2020 but to remain below its potential.

2019-08-14
Mozambique Cuts Interest Rate to 12.75%
The Central Bank of Mozambique lowered its benchmark MIMO interest rate by 50bps to 12.75 percent during its August meeting, saying medium-term inflation expectations continue to improve while economic activity is seen weaker this year. On a more positive note, policymakers believe that the recent Peace and National Reconciliation Agreement signed by President Filipe Nyusi and Renamo leader Ossufo Momade at the beginning of the month would boost investment and activity.

2019-06-19
Mozambique Trims Interest Rate to 13.25%
The Central Bank of Mozambique lowered its benchmark MIMO interest rate by 100 bps to 13.25 percent on June 19th 2019. It is the first rate cut so far this year, bringing borrowing cost to the lowest since 2016. The Committee said that the decision is based on the improvement of the inflation outlook due to the current trajectory and expectations of a lower exchange rate pressure in the domestic market and as the aggregate demand is still below its potential. Policymakers added that they will continue to monitor risks related with inflation. The lending facility rate and the deposit facility interest rate were also cut by 100 bps to 16.25 percent and 10.25 percent, respectively. The required reserve ratio for foreign and domestic currency were left unchanged at 14 percent and 36 percent, respectively.

2019-04-25
Mozambique Leaves Monetary Policy Unchanged
The Central Bank of Mozambique left its benchmark MIMO interest rate steady at 14.25 percent on April 25th 2019, mentioning higher inflationary pressures amid the recent natural disasters and a weaker Metical. In March, annual inflation rate fell to 3.41 percent from 3.72 percent in February, the lowest level since May of 2018. The lending facility rate and the deposit facility interest rate were also kept unchanged at 17.25 percent and 11.25 percent, respectively. The required reserve ratio for foreign and domestic currency were held at 14 percent and 36 percent, respectively.

2019-03-06
Mozambique Keeps Key Rate at 14.25%, Hikes RRR
The Central Bank of Mozambique left its benchmark MIMO interest rate steady at 14.25 percent during a surprise meeting on March 6th 2019 but raised the required reserve ratio for foreign currency by 900 bps to 36 percent, mentioning increasing external risks and a more volatile USD. The required reserve ratio for domestic currency was kept at 17 percent and the lending facility and the deposit facility interest rate were also left steady at 17.25 percent and 11.25 percent, respectively.

2019-02-11
Mozambique Keeps Interest Rate Steady at 14.25%
The Central Bank of Mozambique left its benchmark MIMO interest rate unchanged at 14.25 percent on February 11th 2019, after trimming it by 75 bps in the previous meeting. Policymakers said that the decision is based on the short and medium-term projections which continue to indicate that the inflation rate will remain in a single digit by the end of the year as fuel prices are expected to slow. The Committee added that the economy is projected to expand in the last quarter of 2018 and in 2019 mostly driven by the domestic demand and also noted the risks linked to the sustainability of the public debt, natural disasters and the uncertainties regarding the evolution of administered prices. The lending facility rate and the deposit facility interest rate were also kept unchanged at 17.25 percent and 11.25 percent, respectively. The required reserve ratio for foreign and domestic currency were held at 14 percent and 17 percent.


Mozambique Interest Rate
In Mozambique, interest rates decisions are taken by the Monetary Policy Committee of the Central Bank of Mozambique (Banco de Moçambique). The official interest rate is the interbank money market rate (taxa do mercado interbancário moçambicano, MIMO). It was first introduced on April 10th 2017 and replaced the standing lending facility rate (taxa de juro da facilidade permanente de cedência).

Mozambique Money Last Previous Highest Lowest Unit
Interest Rate 12.75 12.75 23.25 7.50 percent [+]
Money Supply M3 458346.00 451127.90 458346.00 65526.70 MZN Million [+]
Foreign Exchange Reserves 3483.00 3575.00 3575.00 625.00 USD Million [+]
Lending Rate 18.00 18.00 29.75 14.23 percent [+]
Loans To Private Sector 222957126.90 218100216.70 271714439.80 12719071.00 MZN Thousand [+]