Mozambique’s retail banks reduce interest rates in January

13 February 2015

The average nominal interest rate charged on lending by commercial banks in Mozambique fell by 42 basis points to 20.75 percent in January for maturities of 12 months, the Bank of Mozambique said in a statement.

The Mozambican central bank said, however, that the figure was an increase of 45 basis points compared to the average nominal interest rate charged to customers in January 2014.

The average interest rate on deposits remained at around 9.14 percent, about 20 basis points lower than the same quarter of 2014 and the interest rate for the best customers (“prime rate”) stood at 14.75 percent, 19 basis points less than in January 2014.

In the statement, the Bank of Mozambique also said that the Commission had decided to keep benchmark rates unchanged, namely the marginal lending facility liquidity by 7.5%.

The committee also kept the liquidity absorption facility or deposits rate unchanged at 1.50 percent and the coefficient of compulsory reserves at 8 percent.

The commission also decided to intervene in the interbank market in order to ensure that the money supply in February 2015 will total around 54.975 billion meticais. (macauhub/MZ)