Bank of Mozambique holds benchmark rate at 27.75%

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Bank of Mozambique holds benchmark rate at 27.75%

12:00 CAT | 24 Jul 2017

Mozambique’s central bank set the reference rate in the national financial market at 27.75 percent on Friday, leaving the index rate unchanged for the third consecutive time.

The central bank’s chart also shows the weighted average international monetary market operations rate and the single indexer steady at 21.75 percent, writes O Observador.

The creation of the prime rate was agreed on May 17 between Bank of and the Mozambican Association of Banks as a way of eliminating the proliferation of interest rates for borrowing. All credit operations are now based on the single rate, plus a spread to account for risk analysis.

“What we have just witnessed represents an important step towards the crystallization of the reforms introduced more than 20 years ago in the determination of interest rates,” central bank governor Rogério Zandamela said when the measure was announced in May.

The single reference rate is in line with good international practice, and imposes a uniform reference on the formation of credit operation interest rates.

Source: Lusa