Mangani puts positive spin on bank rate cut, says Malawi economy has started  turning round

Secretary to the Treasury Ronald Mangani has put a positive spin to the country’s economic turmoil by dsecriding the Reserve Bank of Malawi (RBM) decision to cut the bank rate or policy rate by 3  percentage points  from 27 percent to 24 percent as a sign that economy is on turnaround for better times.

Secretary to the Treasury Ronald Mangani (l)  says economy on a turn round for better

Secretary to the Treasury Ronald Mangani (l) says economy on a turn round for better

RBM’s Monetary Policy Committee (MPC), chaired by RBM Governor Charles Chuka, resolved to adjust the policy rate downwards by 3 percentage points.

Addressing a news conference , Mangani said it was acceptable for RBM to drop bank rate considering the fact that inflation rate continues to decelerate.

“This reduction in the policy rate reflects the fact that inflation rate is on the downward truck and this means that the economy has started turning round in the right direction,” Mangani told reporters in Blantyre.

According to Mangani, the bank rate reduction  will help anchor Malawi’s production cycle

“We are hoping that production will respond to this move by RBM,” he added.

He said government expects more goods being produced, more jobs to be created, saying the trend reflects “a reversal in the economic instability challenge that e have been facing over a long period of time may be witnessed.”

In his remarks, Chuka said the central bank reduced the bank rate because the inflaton rates is slowing down and Kwacha currently is stable.

“The Kwacha exchange rate has been stable and despite the drop in exports, the country’s official foreign exchange reserves remain at about three months of imports,” said Chuka.

He said exchange rate outlook this year is far much better than last year.

“While utility rates might go up, the increase might be relatively less. Thus, year on year inflation will generally continue to slow down,” the central bank Governor said.

He also said actions taken by government “ to reduce fiscal pressure” have combined to necessitate the bank rate policy cut.

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7 thoughts on “Mangani puts positive spin on bank rate cut, says Malawi economy has started  turning round”

  1. Detective says:

    Kkkkkk this country is indeed herding no where pliz!!!!!!! How can they say government is expecting more production???? Using generators??? Fuel mwakwezaso kkkkkjj dunderheards

  2. Central says:

    Nanunso a Mangani, osamangomwa coffee wanuyo bwabji?

    When you say “……the economy has started turning round in the right direction,” seriously what economic indicators have changed and or are changing on the ground?

    Kindly, you have now made me loose confidence in you!! Are you serious or you just want to please you bosses when you say and I quote: “government expects more goods being produced, more jobs to be created…!” Mr Mangani, how do companies produce more goods when there is no electricity? And how do companies create more jobs when they can not expand and or open new branches?

    Iwedi ndiwe bakha wa DPP etiiiiiiiiiiiii?

    You are evil and ndiwe wwana wa satana………………………………!!

  3. Rasta says:

    Dis ting is ridiculous….kwacha nah stable bredda. u last said in di previous story kwacha ah falin now u say it is gaining stability? Did u not say di introduction of yah 2 grand has come amidst increase in inflation and instability of kwacha? u nuh serious guruz

  4. Luka says:

    ‘He [Mangani] said government expects more goods being produced, more jobs to be created, saying the trend reflects “a reversal in the economic instability challenge that [w]e have been facing over a long period of time may be witnessed.”’

    We are ignoring not only the elephant in the room but also the herd of elephants trampling the maize field.

    Without a reliable supply of electricity, how shall we produce more goods? How will more jobs be created? We are undergoing a process of de-industrialization. We are becoming a nation of wood-cutters and water-carriers [Joshua 9: 27]. Without electricity, it is not the engineer or the industrialist who is in demand; it is the charcoal-burner! Isn’t this the ‘reversal’ that you should be addressing, Mr Mangani?

  5. Tpash says:

    Turning around for the better? Which economy?

  6. Maunits says:

    Poorest country economy turning around then why raising the maize price.

    1. MwanaWafunaYekhaMbolo says:

      These are fools. Aleke iwe agaluwa

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