The benchmark interest rate will remain at 18.9% in July, the Bankers' Association announced this Wednesday (AMB).

It will be the fourth consecutive month of maintenance of the prime rate, which has been fixed at that value since April 1st.

The rate is calculated by AMB and Banco de Moçambique based on a single index of 13.3% (calculated by the central bank) and a cost premium of 5.6% (defined by AMB).

The creation of the 'prime rate' with an initial value of 27.75% was agreed upon between the central bank and AMB in June 2017 to eliminate the proliferation of reference rates in the cost of money.

The goal is that all credit operations will be based on a single rate, "plus a spread, which will be added to or subtracted from the prime rate according to the risk analysis" of each contract, explain the promoters.