Mozambique: Reference Rate remains unchanged at 18.5% for April
March 31st, 2025The benchmark interest rate for credit in Mozambique will remain unchanged at 18.5% during April, with the banking system still not reflecting the Central Bank's recent decision to reduce the rate.
In March, the Mozambican Banking Association had already promoted a cut of 50 percentage points, adjusting the rate to 18.5%, after a period in which the rate remained at 19% in February. This cut represents the fifth reduction in the last six months, demonstrating a downward trend in the rate since January 2024, when it had peaked at 24.1% for six consecutive months.
This rate, also known as the 'prime rate', is closely linked to the monetary policy interest rate (MIMO rate), which directly affects the central bank's calculation of the 'prime rate' as a means of controlling inflation.
On March 26, the Monetary Policy Committee (CPMO) of the Bank of Mozambique announced a reduction in the MIMO monetary policy interest rate, which fell from 12.25% to 11.75%. The decision was made on the basis of inflation projections, which remain in the single digits in the medium term, despite growing uncertainties related to increased fiscal risk.
The next CPMO meeting is scheduled for May 28.
