Malawi Central Bank maintains 13.5% policy rate

MZUZU-(MaraviPost)-The country’s central bank, Reserve Bank of Malawi (RBM) on Friday announced that it has maintained the policy rate—also known as the bank rate—at 13.5 percent.

The bank further indicated that  the country’s economy is expected to grow by 5% this year, up from 4% the previous year

RBM Governor Dr  Dalitso Kabambe told the news conference in Mzuzu branch that the third Monetary Policy Committee (MPC) resolutions has maintained the policy rate, the rate at which commercial Banks borrow from the Central Bank, at 13.5 per cent as means to support diversification and higher economic growth.

The MPC chair Dr. Kabambe added that Malawi has for the first time managed to anchor non food inflation to a single digit and also projected that it will remain low supported by relatively tight monetary policy as well as continued stability of the exchange rate.

“But it is our projection that Malawi will maintain a single digit inflation at least for the next 36 months as emerging risks the effects of Cyclone Idai and the elevated prices of maize are deemed temporary,” he said.

Technically, inflation refers to the rate of the general rise or movement in prices of goods and services consumed in an economy. It is also defined as a general and sustained rise in the level of prices of goods and services.

Kabambe also said Malawi’s economy expected growth by 5% this yearis in line with IMF projections, boosted by better agriculture output.

Lloyd M’bwana

I’m a Lilongwe University of Agriculture and Natural Resource (LUANAR)’s Environmental Science graduate (Malawi) and UK’s ICM Journalism and Media studies scholar. Also University of Malawi (UNIMA) Library Science Scholar. I have been The Malawi Country Manager and duty editor for the Maravi Post since 2019. My duty editor’s job is to ensure that the news is covered properly, that it is delivered on time, and that it is created to the standards set out in the editorial guidelines of the Maravi Post.