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.
