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The unitary benchmark rate for the Mozambican financial market will decline from 27 percent to 25.75 percent in February, the central bank has said in a statement.
The 1.25 percent drop in the prime rate is the largest since it came into effect in June 2017, and comes at the suggestions of business people and international partners, in order to boost the economy.
The creation of a single Mozambican prime rate was agreed in May 2017 between the central bank and the Mozambican Association of Banks to eliminate the proliferation of benchmark rates in the cost of money.
The aim is for all credit operations to be based on a single rate, “plus a spread, which will be added to or subtracted from the prime rate according to risk analysis”, depending on the individual contract and bank.
Since it was established at 27.75 percent, the benchmark rate has fallen by 2 percent.Source: Lusa