Mozambican Banks hold lending rate at 15.5%
The Association of Mozambican Banks kept its benchmark lending rate unchanged for the seventh month in a row.
The Association of Mozambican Banks (AMB) decided on October 30 to maintain its benchmark lending rate at 15.5%. This decision follows the central bank's move to keep its MIMO benchmark policy rate at 9.25% since January.
This 'prime rate' has decreased since January 2024, after being at a record high of 24.1% for six months. The AMB previously cut the rate by 10 basis points in January, February, March, and April. The rate has remained stable through October and November.
Bank of Mozambique Governor Felisberto Navalha stated on September 30 that maintaining prudence was necessary to avoid future irresponsibility. The Monetary Policy Committee's decision to hold the MIMO rate unchanged at 9.25% was influenced by economic risks and the conflict in the Middle East.
Why it mattersMozambican banks have held their benchmark lending rate steady, impacting the cost of borrowing for businesses and individuals.