Mozambique’s benchmark interest rate will remain at 18.9% in September, the Mozambican Association of Banks (AMB) said on Tuesday.
September will be the prime rate’s sixth consecutive month at that level, at which it was set on 1 April.
As in previous months, the rate calculated by the AMB and Bank of Mozambique is based on a single index of 13.3% (calculated by the central bank) and a cost premium of 5.6% (set by the AMB).
The creation of the prime rate was agreed between the central bank and the Mozambican Association of Banks (AMB) in June 2017 – with an initial value of 27.75% – to eliminate the proliferation of reference rates for the cost of money.
The aim is for all credit operations to be based on a single rate plus a margin or spread to be added to or subtracted from the prime rate based on risk analysis of each contract, the institutions explained at the time
Lusa
