The Central Bank of Mozambique left its benchmark MIMO interest rate steady at 15 percent on October 22nd 2018, after trimming it by 75 bps in the previous meeting. Policymakers said that the medium-term projections continue to indicate the inflation rate in a single digit. The annual inflation rate eased to 4.89 percent in September 2018 from 5.02 percent in August and it is expected to remain stable and low. Still, the bank is aware of the high internal risks associated with the sustainability of the public debt as well as the uncertainties regarding the evolution of administered prices. On the external front, policymakers underscored risks linked to commercial and geopolitical tensions, the dollar strengthening, volatility in commodities prices and rising crude oil prices. The lending facility rate and the deposit facility rate were left unchanged at 18 percent and 12 percent, respectively. Also, the required reserve ratio was unchanged at 27 percent for foreign currency. Interest Rate in Mozambique averaged 13.18 percent from 2009 until 2018, reaching an all time high of 23.25 percent in October of 2016 and a record low of 7.50 percent in November of 2014.
Interest Rate in Mozambique is expected to be 13.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Mozambique to stand at 9.00 in 12 months time. In the long-term, the Mozambique Interest Rate is projected to trend around 10.00 percent in 2020, according to our econometric models.