Mozambique: Bank savings reach six-month high in January, at 304.5 billion meticais

Mozambican savings in term deposits reached a six-month high in January, totalling 304.5 billion meticais (over €4.13 billion), according to official data obtained by Lusa on Monday. According to statistical data from the Bank of Mozambique, these term deposits in the Mozambican banking sector had reached 264.7 billion meticais (€3.52 billion) in June 2024, growing progressively each month until the record of 305.9 billion meticais (€4.15 billion) in July last year. The value recorded in January was the second highest in more than a year, representing a 6.5% increase compared with the same month in 2025, according to the central bank’s historical records.

Demand deposits also continued to grow, rising 1% in a month to 482.0 billion meticais (€6.54 billion) in January. Mozambique currently has 15 commercial banks and 12 microbanks, in addition to credit cooperatives and savings and credit organisations, among others. On 28 January, the Bank of Mozambique cut the monetary policy interest rate (MIMO) for the 12th consecutive time, by 0.25 points to 9.25%, forecasting its stabilisation but warning of the impact of flooding on prices.

“This decision is supported by the outlook for maintaining single-digit inflation in the medium term, despite the materialisation of certain risks and uncertainties associated with inflation projections, notably — as you might imagine — flooding and the intensification of trade and geopolitical tensions,” announced Bank of Mozambique Governor Rogério Zandamela at the conclusion of the Monetary Policy Committee (CPMO) meeting. The benchmark interest rate in Mozambique had been set at 17.25% since September 2022, after intervention by the central bank. Consecutive cuts began on 31 January 2024, when the rate was reduced to 16.5%.

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In March last year it was cut to 15.75%, with subsequent reductions at every meeting, reaching 9.75% in September, 9.50% in November, and now 9.25%. “However, given the worsening of these risks and uncertainties, the CPMO considers that the end of the MIMO rate reduction cycle, begun in January 2024, is approaching,” added Zandamela, noting that the downward trajectory had initially been forecast to continue for up to 36 months. The CPMO meets again today in Maputo to decide on any potential changes to the country’s benchmark interest rate.

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