The Monetary Policy Committee (CPMO) of the Bank of Mozambique decided to reduce the monetary policy interest rate, MIMO rate, from 16.50 % to 15.75 %.

The Bank of Mozambique says that the decision is underpinned by the consolidation of the outlook for single-digit inflation in the medium term, in a context in which the assessment of risks and uncertainties associated with the projections remains favorable.

This is an initiative that will allow credits to be more affordable, which will boost consumption and investment.

The Governor of the Bank of Mozambique, who was speaking at a press conference on Wednesday, also said that domestic public indebtedness remains high, at 344.0 billion meticais, which represents an increase of 31.7 billion compared to December 2023.

For the medium term, the central bank expects economic growth to remain moderate, and in the fourth quarter of 2023, excluding LNG, gross domestic product (GDP) is estimated to have grown by 3.6 % after 3.3 % in the previous quarter.