Maputo, Dec. 31, 2025 (Lusa) - The benchmark interest rate for credit in Mozambique will fall again in January, by 0.10 percentage points, to 15.70%, the Mozambican Banking Association (AMB) announced on Wednesday.
Since January 2024, the rate, known as the “prime rate”, has been falling steadily after six consecutive months at a high of 24.1%.
Fluctuations in the prime rate are linked to the monetary policy interest rate (the MIMO rate), which influences the formula used to calculate the prime rate, and is set by the central bank to control inflation. In August, it had fallen to 17.20%, and in September to 16.5%, remaining unchanged during October by decision of the AMB, even though, a few days earlier, on 29 September, the Monetary Policy Committee (CPMO) of the Bank of Mozambique had cut the MIMO monetary policy interest rate for the tenth consecutive time, by 0.50 percentage points, to 9.75%.
In November, the AMB cut the interest rate to 16%, in December to 15.80% and in January to 15.70%.
Previously, on 14 November, the Bank of Mozambique cut the MIMO monetary policy interest rate for the 11th consecutive time, by 0.25 percentage points, to 9.5%, despite concerns about delays in public debt payments.
"This modest reduction reflects the worsening risks and uncertainties associated with inflation projections, particularly the delay in the payment of domestic public debt instruments by the State. The inflation outlook remains in single digits in the medium term. In October 2025, annual inflation stood at 4.8% after 4.9% in September," announced central bank governor Rogério Zandamela after the last CPMO meeting of 2025.
The key interest rate in Mozambique had been set at 17.25% since September 2022, following the central bank's intervention, which then began consecutive cuts from 31 January 2024, when it was reduced to 16.5%. In March last year, the Bank of Mozambique cut it to 15.75%, which was repeated at all subsequent meetings, reaching 9.75% in September and 9.5% in November.
The CPMO meets every two months, and the next meeting is scheduled for 28 January 2026.
PVJ/ADB // ADB.
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