Standard Bank expects Mozambique to end the year with inflation of 11.7%, with the pace of price rises slowing over the coming months.
The peak may already have been reached in August, according to the bank's chief economist, Fáusio Mussá.
The official highlights the impact of measures announced by the Government to subsidise transport and fuel imports in order to ensure a degree of price stability.
"The most vulnerable sections of our society are the ones who feel the impact of rising fuel prices most keenly," he said.
"In this scenario, we expect the Bank of Mozambique to keep its monetary policy reference interest rate (MIMO) at its current level of 15.25% until the end of the year," he added.
Fáusio Mussá says he is concerned about falling international reserves, reducing import cover to 4.7 months.
"Given the increase in external aid (from the World Bank, the International Monetary Fund and other partners), it is expected that the Government will be able to restore reserves to a ratio of more than four months of imports in the coming months," he added.
"This could help ease some of the pressures being felt in the foreign exchange market in terms of liquidity," said Fáusio Mussá.
