The Central Bank of Mozambique left its benchmark MIMO interest rate unchanged at 12.75% during its December 2019 meeting, saying that military instability in the central and northern areas of the country and the higher likelihood of climatic shocks continues to pose elevated risks to the inflation outlook. However, policymakers underscored that inflation is expected to remain low in the medium-term, despite the recent uptick in prices. The economy is seen recovering from 2020, though below its potential, supported by post-cyclones reconstruction, the settlement of state debts and the implementation of projects in the natural gas sector. The Committee also noted that government debt fell slightly since the previous meeting and the country's foreign reserves stood at comfortable levels. Interest Rate in Mozambique averaged 13.29 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 11.25 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.