31.07.202515:22:14UTC+00Mozambique Slashes Policy Rate to 10.25%

The Central Bank of Mozambique lowered its key MIMO interest rate by 75 basis points to 10.25% on July 31, 2025, continuing its trend for the tenth successive rate decrease. Authorities stated that this decision represents the ongoing stability of inflation expectations, keeping them within single digits for the foreseeable future. This has been facilitated by a steady exchange rate and positive developments in global goods prices. Inflation marginally increased to 4.2% in June from 4% in May. However, the central bank highlighted significant risks and uncertainties in the inflation outlook. Contributing factors that may push inflation upward include a deteriorating fiscal environment—reflecting increased challenges in securing financial resources for the State Budget—uncertainties regarding the recovery speed of productive capacity and goods and services supply, along with the repercussions of climate-related disturbances.