Mozambique central bank trims policy rate but says end of easing cycle is near

MAPUTO, Jan 28 (Reuters) -

Mozambique's central bank cut its policy rate by 25 ?basis points to 9.25% on Wednesday, its 13th cut in ?a row, but it said the end of its ?easing cycle was near because ?of risks ?including severe floods in the past few weeks.

The Bank of Mozambique's ?last rate decision in November ?was also a 25-basis-point cut.

As well as the

floods

, which the government estimates ?to have caused $644 million of ?damage ?to infrastructure, Governor Rogerio Zandamela cited trade and geopolitical tensions among uncertainties affecting the economic outlook.

Mozambique's annual ?inflation rate slowed to 3.23% in December from 4.38% in November, its lowest level in 13 months.

But analysts at Oxford Economics predict inflation will pick up as this year progresses, fuelled ?by ?some monetary financing of the budget deficit, the resumption of construction of mega liquefied natural ?gas projects and a potential devaluation of the country's metical currency.

Mozambique is in negotiations with the International Monetary Fund over a new lending programme. Once a deal is in place, its president has said the government ?could seek to restructure its debt. (Reporting by Manuel Mucari and Custodio Cossa; Additional reporting by Sfundo Parakozov in Johannesburg; Writing by ?Anathi Madubela; Editing by Alexander Winning and Toby Chopra)