LILONGWE-(MaraviPost)-The country’s central bank, Reserve Bank of Malawi has reduced the policy rate by 200 basis points from 26 percent to 24 percent, signalling easing inflation pressures while maintaining a tight monetary stance.
This means borrowing from commercial banks will have lower interest rates.
The decision was made during the Monetary Policy Committee’s first meeting of 2026, held on March 4 to 5, after reviewing recent economic developments and the inflation outlook.
According to the central bank, the adjustment follows a gradual decline in inflation.
RBM discloses that headline inflation fell to 24.9 percent in January 2026, supported largely by lower food prices after government interventions to boost maize supply.
“The current inflation outlook allows for a cautious reduction in the Policy Rate while maintaining a sufficiently tight monetary policy stance,” read the committee’s statement in part.
The Central Bank said monetary policy will remain focused on steering inflation toward the medium-term target of 5 percent, while monitoring rising non-food prices driven by higher production and import costs.