Mozambique Leaves Key Rate Unchanged at 9.25% on Inflation Concerns

May 26, 2026

Mintesinot Nigussie

The Bank of Mozambique has kept its benchmark interest rate unchanged at 9.25%, maintaining a cautious stance as policymakers navigate rising inflation and heightened global uncertainty linked to geopolitical tensions.

The decision extends a pause in the easing cycle that began in January 2024. Recent policy moves have been shaped by shifting inflation expectations and external shocks, including disruptions linked to conflicts in the Middle East.

Governor Rogerio Zandamela said the outlook remains clouded by uncertainty over the duration of the Iran-related conflict and its potential transmission into domestic prices through fuel and imported goods.

Inflation trends have reinforced the cautious position. Annual price growth accelerated to 4.41% in April, up from 3.37% in March.

The central bank has signalled that future policy decisions will remain dependent on the evolution of both global and domestic risks, with particular attention to energy markets and inflation expectations.