Reserve Bank of Malawi (RBM) has left the benchmark lending rate unchanged at 27 percent, the central bank has said.
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.Follow and Subscribe Nyasa TV :