Reserve Bank of Malawi leaves benchmark lending rate unchanged

Reserve Bank of Malawi (RBM) has left the benchmark lending rate unchanged at 27 percent, the central bank has said.

Charles Chuka  governor of Reserve Bank  -Announced on Friday no change of banking rate

Charles Chuka governor of Reserve Bank -Announced on Friday no change of banking rate

RBM said in a statement the banking rate is unchanged  owing to weak growth and lower agricultural production due to a severe drought.

“The MPC (Monetary Policy Committee) observed that global recovery was fragile and the outlook remained weak,”  the central bank said after a two day meeting.

The Monetary Policy Committee met to review recent economic developments and decide on Monetary Policy stance.

According to National Statistical Office (NSO), inflation is  at  21.5 percent .

Malawi’s inflation rate is one of the highest in the Common Market for Eastern and Central Africa (Comesa) under Harmonised Consumer Price Index (HCPI).

An economics professor at Chancellor College, a constituent college of the University of Malawi (Unima), Ben Kaluwa,  said   n the wake of poor harvest this year, Malawi’s food prices will continue to escalate thereby pushing up inflation rate.

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