The prime rate, which is responsible for loans and other credit operations in the financial system, fell from 24.1% to 23.5%, a reduction of 0.60 percentage points, according to a statement from the Mozambican Banking Association.

"From the previous 24.10%, the Reference Rate of the Mozambican Financial System is now 23.50%, of which 17.30% is the Single Index, calculated by the Bank of Mozambique; and 6.20% is the Cost Premium, calculated by the Mozambican Banking Association," reads the banks' note. 

According to the statement, "the Prime Rate of the Mozambican Financial System is the single reference rate for credit operations with a variable interest rate and results from the sum of the Single Index and the Cost Premium".

This rate, explains the note we have been quoting, applies to credit operations contracted between credit institutions and financial companies and their customers, plus a margin (spread) which will be added to or subtracted from the Prime Rate, depending on the risk analysis of each specific category of credit or operation.

It should be noted that the first quarter of last year was the period with the lowest benchmark rate, when it was 22.60%.