The prime rate for credit operations in Mozambique will remain unchanged in October, for the fourth consecutive month, at 24.10%, the Mozambican Banking Association (AMB) said today.

The prime rate had been falling since 2018, to a low of 15.5% in February 2021, when the trend reversed and the rate began to rise to 23.5% since April, and then to 24.10% since July.

The increases in the prime rate have been associated with the central bank raising the monetary policy interest rate (MIMO rate, which influences the formula for calculating the prime rate) in order to control inflation.

It should be noted that the prime rate was created in 2017 following an agreement between the central bank and AMB to eliminate the proliferation of reference rates on the cost of money.