Mozambique Signals End of Record Rate-Cutting Streak Is Near

Mozambique’s central bank extended its longest rate-cutting cycle, lowering its benchmark to a record low, while signaling that there is limited scope for further easing.

The Banco de Moçambique reduced the rate, known by its Portuguese acronym Mimo, by 25 basis points to 9.25%, Governor Rogério Zandamela told a briefing in Maputo, the capital, on Wednesday. While inflation will remain in single-digits for the medium term, risks including severe floods and trade tensions meant the end of the cutting cycle that started two years ago is approaching, he said.