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.