Mozambique
Banco de Moçambique holds policy rate for third consecutive meeting as disinflation holds
Mozambique's central bank left its benchmark policy rate unchanged on 29 July for the third consecutive meeting, indicating that tighter monetary conditions are successfully curbing inflation despite external pressure from the Middle East conflict and elevated fuel import costs. The hold reflects a monetary authority balancing disinflation progress against the growth cost of sustained restrictive policy in an economy still absorbing the fiscal and security consequences of the Cabo Delgado insurgency. Mozambique has been in negotiation for a new IMF facility since mid-2025 and signalled seriousness earlier in 2026 by repaying Fund arrears ahead of schedule, with a programme agreement widely expected within the year. For LNG investors and the wider Rovuma Basin project set, monetary stability is a necessary but not sufficient condition: the operative constraints on Mozambican project delivery remain security in the north and the sovereign's capacity to meet its equity obligations.
