Mozambique's central bank left its benchmark MIMO interest rate unchanged at 10.25 percent during its August 2020 meeting, after cutting it by 100 bps in June. The decision was based on a deterioration in the medium-term inflation prospects as well as risks and uncertainties linked to the Covid-19 pandemic and armed conflicts in the north of the country. The short and medium-term estimates indicate that the inflation rate will remain in a single-digit but it is seen accelerating, amid the combined effect of a weaker Metical and the recovery of fuel prices in international markets. Meanwhile, the bank continued to project a deeper contraction in economic activity in 2020 and a slower recovery in 2021, as disruptions in production and demand should persist in the medium-term.
Interest Rate in Mozambique averaged 13.19 percent from 2009 until 2020, 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. This page provides - Mozambique Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Mozambique Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on October of 2020.
Interest Rate in Mozambique is expected to be 10.25 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 9.25 in 12 months time. In the long-term, the Mozambique Interest Rate is projected to trend around 9.25 percent in 2021, according to our econometric models.