• Mozambique central bank cut benchmark rate to 9.25%
• Inflation eased to 3.2% in December, supporting policy easing
• Thirteenth consecutive rate cut since January 2024
  

The Bank of Mozambique cut its benchmark interest rate to 9.25% from 9.50%, the central bank said in a statement on Wednesday, Jan. 28, 2026.

The decision was based on expectations that inflation will remain in single digits over the medium term, despite risks and uncertainties affecting inflation forecasts, including floods and the escalation of trade and geopolitical tensions, it said.

Annual inflation slowed to 3.2% in December from 4.4% in November, helped by a stable national currency and steady international prices.

On economic activity, the bank noted that gross domestic product excluding liquefied natural gas production contracted by 1.3% after a 1.7% decline in the second quarter.

The central bank still expects a gradual recovery in the non-LNG economy, though growth is likely to remain moderate due to the lingering impact of climate-related shocks.

The latest move marks the 13th consecutive rate cut since January 2024, when the benchmark stood at 16.50%. In November, the monetary policy committee lowered the rate to 9.50%.

Ingrid Haffiny