The Central Bank of Mozambique lowered its benchmark MIMO interest rate by 50bps to 12.75 percent during its August meeting, saying medium-term inflation expectations continue to improve while economic activity is seen weaker this year. On a more positive note, policymakers believe that the recent Peace and National Reconciliation Agreement signed by President Filipe Nyusi and Renamo leader Ossufo Momade at the beginning of the month would boost investment and activity. Interest Rate in Mozambique averaged 13.31 percent from 2009 until 2019, 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 12.75 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 11.00 in 12 months time. In the long-term, the Mozambique Interest Rate is projected to trend around 9.00 percent in 2020, according to our econometric models.