Reserve Bank maintains policy rate
The Monetary Policy Committee (MPC) of the Reserve Bank of Malawi has announced that it maintained the policy rate of 18%.
At its first quarterly meeting for the year 2023, the MPC has resolved not to make adjustments to the rate and a statement from the Central Bank Governor, Wilson Banda, said the decision is stemming from observation that some factors that have been increasing inflationary pressures are easing.
“The development means commercial banks are also likely to keep their lending rates low, keeping the cost of borrowing at a manageable level,” he said.
Banda added that headline inflation which is currently at 26%, may remain in double digit this year, affecting economic growth prospects, hence the maintain on the monetary policy.