Mozambique’s central bank lowered its benchmark Mimo rate to 13.5% from 14.25%, marking its third consecutive rate cut this year. The rate reduction comes as annual inflation eased to 2.8% in August, helped by a stable currency. However, high borrowing costs persist due to the government’s reliance on local debt markets to fund the budget deficit. This move offers relief for borrowers as the country heads to general elections on October 9.