Maputo, May 2, 2025 (Lusa) - According to information from the Mozambican Banking Association (amb), to which Lusa had access on Friday, the reference interest rate for credit in Mozambique will fall in May to 18%, a cut of 50 percentage points compared to April.

The AMB had already cut this rate by 50 percentage points in March, to 18.5%, the fifth cut in six months, since only in February had the rate remained unchanged at 19%, as it did in April.

Since January 2024, the rate, known as the prime rate, has been falling progressively, after six consecutive months at highs of 24.1%.

Fluctuations in the prime rate are linked to the monetary policy interest rate (MIMO rate, which influences the formula for calculating the prime rate) used by the central bank to control inflation.

The Monetary Policy Committee (CPMO) of the Bank of Mozambique decided on 26 March to lower the MIMO monetary policy interest rate from 12.25%, in force since January, to 11.75%.

"This measure stems essentially from the maintenance of the inflation outlook in single digits in the medium term, despite the increase in uncertainties regarding the effects of the worsening fiscal risk," said the final communiqué of the CPMO meeting, which takes place every two months.

The next CPMO meeting is scheduled for 28 May.

PVJ/ADB // ADB.

Lusa