Malawi economy to grow by 5%: Reserve Bank urges end of demo, maintains policy rate at 13.5%

Reserve Bank of Malawi (RBM) has announced that it has maintained the policy rate—also known as the bank rate—at 13.5  percent and that the country’s economy is expected to grow by 5% this year, up from 4% the previous year.

Kabambe (2nd from left) presenting report of the Monetary Policy Committee

RBM  Governor, Dalitso Kabambe said this to reporters in Mzuzu at the Reserve Bank Mzuzu branch after his presentation of the third Monetary Policy Committee (MPC) resolutions.

He said the MPC 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 also said 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.

In his numerous addresses, President Peter Mutharika highlights the single-digit inflation rate among his administration’s achievements in terms of economic management.

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

President Mutharika had promised to grow the economy by at least 7 percent a year between this year and 2024.

Meanwhile,  Kabambe made an impassioned implicit plea tothose holde demonstrations demanding the resignation of the head of the Malawi Electoral Commission (MEC), Jane Ansah to consider ending the violent protests.

Human Rights Defenders Coalition (HRDC), organizers of the protests, accuse Ansah of mismanaging the May polls.

Governor Kabambe warned that if the post-election protests continue their impact on the economy will be quite significant in the long term.

Kabambe said losses will be across the board from government, small scale businesses and the private sector.

“One day of demonstrations means companies, government and other business would have lost revenue and yet by the end of the month they will have to pay workers, remit taxes and pay for utilities. We hope this issue would be resolved amicably and sooner,” Kabambe said.

The merchants also say violent demonstrations hurt their businesses.

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Flames
Guest

The ball is not in the hands of Human rights defenders to end the demos but the appointing athourities who handpicked Jane who happen to have an Ansah. Jane should know by now that we don’t want her even if she clings to power.Her stubbornness and the DPP backing means government is not worried about the damage the demos will continue to bring.Otherwise she would have resigned kale if government really minds about peace and progress

Tippex is king
Guest

Remember this is the fastest growing economy after Qatar. It does not need an Ansah!

Freedom Fighter
Guest
Freedom Fighter

Mr governor, i need to be educated. A 50kg bag of maize is now selling at almost MK15,000. Is this what you call economic growth? I have a loan at standard bank, am still paying back at the interest of almost 40%. I just don’t understand kuti masamu anu mmapanga motani………Are you fooling the malawians?

Lux Tikitira
Guest
Lux Tikitira

You guys have the answer to this. Simply ask your tippex boss to get rid off Jeni Answer and the entire matter is brought to an end. Ndi inu mukusangalala with the destruction of properties because of your delays in telling Jeni to bow down after all she will remain your most dependable Judge ku high court kwanuko. You mean to say Jeni is the only one capable of being chair to your MEC? Madam Anasitansia Msosa handled the other elections successfully. Why cant you ask yourselves why this hulabaloos were not there? Koma ndiye satana Jeni wakuonongani mitu anthu… Read more »

Mr Truth Pains
Guest

Kabambe the simplest logic to end demo is to tell Muntharika to fire Jane Ansah, if he insist to keep her then we will conclude that the president doesn’t care the welfare of Economy and Malawi as a whole. This is very simple thing that even my standard 7 son can do , just fire Jane Ansah and see if people will be willing to join HRDC anymore. I hope majority will see that you have answered their needs then Demos will die natural death even if the HRDC would want to continue but they will lack majority support. Hence… Read more »

Tippex is king
Guest

Life is simple.

Demo Kayende
Guest
Demo Kayende

Stupid Governor and a cadet. Are the demos inflationary ? Or are they causing there huge deficits we see today? Mlomwe wopusa!

VYOTO
Guest
VYOTO

A VERY SIMPLE QUESTION TO RBM GOVERNOR, WHAT IS THE VALUE TO THE ECONOMY OF MAINTAINING JANE ANSAH AS MEC CHAIR WITH HER ACCUSATION OF FRAUDULENTLY MANAGING THE MAY 21 ELECTIONS ? MALAWIANS EXPECT PEOPLE LIKE YOU, MR RBM GOVERNOR WHO ARE IN POSITIONS OF AUTHORITY TO DISCUSS THESE CRITICAL ISSUES WITH THE PRESIDENT THE EARLIER THE BETTER.IT IS NOT ENOUGH TO TALK LIKE ANY BODY ELSE….

Tariq
Guest
Tariq

Either I go to the demos to protest for my rights, or I go to work so that my taxes are stolen by Mutharika and his band of thieves. I choose the former. For thieves, the economy is always great because they steal.

Conspiracy of Fools
Guest

It is becoming evident that crime – mismanagement of elections has benefits to the criminal circle.

Njolo mpilu
Guest
Njolo mpilu

eya kucotsa nsonkho pa bread osati pa feteleza or cimanga. shiiiiit

Njolo mpilu
Guest
Njolo mpilu

we dont all bullshit to tell us to stop demos. okkkyyyy!!!
jane and pitala to go. zisankho munabela basi. pls dont appease us looking l8ke you are inteligent yet the chuka, mcakulu have a finger on the monies. total crap.
now its all the nonsense with fdh,fdh what a fuck