Mozambique’s central bank has reduced its benchmark interest rate to 11.75% from 12.25%, continuing its longest easing cycle since 2017. This comes amid slight inflation acceleration to 4.7%, and a 4.9% GDP contraction in Q4 2024 due to post-election unrest. Mozambique is facing a foreign-exchange shortage with a USD 373 mln backlog and delays in IMF program approvals. S&P Global Ratings downgraded Mozambique’s domestic currency debt to selective default due to a distressed debt swap.