The prime rate of interest in Mozambique’s financial system will fall in October from 18.3% to 18%, the Mozambican Association of Banks and the central bank said in a statement on Monday.
The figure will take effect on Tuesday and will be the fourth consecutive decrease this year.
Since it was created on May 2017, the reference rate has never risen and has already fallen by 9.75 percentage points.
The creation of the prime rate was agreed between the central bank and the Mozambican Banking Association (AMB) to eliminate the proliferation of reference rates in the cost of money and came into force on 1 June 2017.
The aim was for all credit operations to be based on a single rate, plus a spread, which will be added to or subtracted from the prime rate through risk analysis of each contract, the promoters said.
Source: Lusa via Club of Mozambique