Mozambique Central Bank Holds Interest Rate at 9.25%

The Banco de Moçambique has decided to hold its benchmark interest rate at 9.25%, pausing a record streak of interest rate cuts. This decision was announced by Governor Rogerio Zandamela during a meeting in Maputo on November 2023.

The bank's choice to maintain the rate comes amid rising inflation risks, influenced by both domestic and international factors. The governor highlighted concerns regarding inflationary pressures and the need for a cautious approach to preserve macroeconomic stability in the face of significant challenges, including climate shocks and industrial disruptions.

The decision reflects the bank's strategy to control inflation while navigating uncertain economic conditions. This stance contrasts with other African central banks, which are adopting varied monetary strategies in response to global uncertainties, particularly the impact of rising global energy costs linked to geopolitical tensions.