Mozambique’s Interest Rate to Fall by 50 Basis Points

(3 Minutes Read)

The AMB had already cut the rate by 50 percentage points in March to 18.5%, the fifth cut in six months. Only in February and April had the rate remained unchanged, at 19%.  Since January 2024, the rate, known as the ‘prime rate’, has been progressively falling, after six consecutive months at highs of 24.1%.

The benchmark interest rate for credit in Mozambique will fall by 50 percentage points to 18% in May, according to information from the Mozambican Banking Association (AMB) to which Lusa had access today.

The AMB had already cut the rate by 50 percentage points in March to 18.5%, the fifth cut in six months. Only in February and April had the rate remained unchanged, at 19%.  Since January 2024, the rate, known as the ‘prime rate’, has been progressively falling, after six consecutive months at highs of 24.1%.

The fluctuations in the prime rate are associated with the monetary policy interest rate (MIMO rate) set by the central bank to control inflation.

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On 26 March, the Monetary Policy Committee (CPMO) of the Bank of Mozambique decided to further reduce the MIMO monetary policy interest rate from 12.25%, in force since January, to 11.75%. The next CPMO meeting is scheduled for 28 May.