The ‘stock’ of credit to the Mozambican economy increased by nearly 3% in May compared to the previous month, reaching a new record of 292.682 million meticais (3.912 million euros), according to official data compiled today.
The historical data from the Banco de Moçambique’s statistical report shows that this ‘stock’ in May contrasts with the 284.535 million meticais (3.803 million euros) in April, which was then the second-lowest value in a year.
Thus, the volume of credit granted by Mozambican banks reached a new historical peak in May, surpassing the previous record of 290.973 million meticais (3.890 million euros) in November 2024.
According to the central bank’s data, credit to individuals continued to lead in May, despite a slight decrease from April, amounting to 99.926 million meticais (1.327 million euros).
This was followed by the transport and communications sector, with total credit granted by banks increasing in May to 25.888 million meticais (346 million euros), the manufacturing industry with 22.260 million meticais (297.5 million euros), and commerce with 21.853 million meticais (292.1 million euros).
The Monetary Policy Committee (MPC) of the Banco de Moçambique decided on May 30 to further reduce the MIMO policy interest rate by 0.75 points, setting it at 11%, announced the central bank’s governor, Rogério Zandamela.
“This measure essentially stems from the consolidation of medium-term single-digit inflation prospects, partly reflecting the favorable trend in international goods and services prices, despite the sustained high risks and uncertainties associated with domestic projections,” said the governor at the end of the MPC meeting.
When questioned by journalists about the rate’s potential development by year-end and the possibility of reaching a single digit this year, Zandamela stated that this new cut “is within the strategy” set by the central bank: “The only thing we can say at the moment is that we are in line with the defined path, 24 to 36 months, it might happen sooner, it might not. If it happens, it’s good news.”
The key interest rate had been set at 17.25% since September 2022, following central bank intervention, which then initiated consecutive cuts starting January 31, 2024, when it was reduced to 16.5%.
On March 27 last year, it was cut to 15.75%, on May 27 to 15%, on July 31 to 14.25%, on September 30 to 13.5%, on November 27 to 12.75%, on January 27 this year to 12.25%, and on March 26 to 11.75%, followed by the new reduction.
“The MPC will continue the process of normalizing the minimum rate in the medium term. The pace and magnitude will continue to depend on inflation prospects as well as the assessment of risks and uncertainties underlying medium-term projections,” Zandamela stated.
The next MPC meeting is scheduled for July 30.
