Mozambique: Bank of Mozambique Continues Holding Interest Rate At 9.25 Per Cent

Maputo, 30 Jul (AIM) The Monetary Policy Committee of the Bank of Mozambique (CPMO), meeting in Maputo on Wednesday, has decided to continue keeping its benchmark interest rate, known as the MIMO rate, at 9.25 per cent.

A statement from the CPMO said the decision reflects a confidence in economic stability and the effectiveness of measures adopted to control inflation. "Although inflation rose slightly to 7.5 percent in June, the outlook points to a slowdown in the medium term, supported by exchange rate stability and the expectation of falling international energy and food prices", reads the document.

According to the Central Bank, the national financial system remains "solid, resilient, and well-capitalized", with indicators above regulatory minimums, ensuring the capacity to withstand potential economic shocks.

The document points out that the financial inclusion continued to grow as "the number of financial service access has increased by 47 percent since late 2024, while e-money accounts have grown by 18 percent, enhancing the population's access to the financial system."

The introduction of the Instant Payment System (METIX), which is a digital payment platform aimed at "making the transfer of money faster, more efficient and immediate", is also another positive gain for the country's financial system as banking transactions have reached higher levels and "the number of daily transfers has tripled since its launch in March of this year, surpassing 11,000 operations per day."

"In the foreign exchange market, there is greater fluidity in currency trading, supported by the dynamism of the extractive industry, which contributes to market stability", reads the statement.

The Bank of Mozambique has reaffirmed its commitment to continue conducting monetary policy prudently preserving price stability and strengthening the national economy, despite persistent risks in the international context, specifically the conflict in the Middle East and internal challenges such as high public debt.

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