Reserve Bank of Malawi reduces policy rate to 14.5%

The Reserve Bank of Malawi (RBM) has trimmed the policy rate—the rate at which commercial banks borrow from the central bank as lender of last resort—by one point five  percentage points from 16 percent to 14.5 percent.

Kabambe says from now on, commercial banks will use the Lombard rate at 14.9% as the base lending rate.

RBM governor Dalitso Kabambe announced this at a news conference  on the Monetary Policy Committee decision.

He said RBM are hopeful that commercial banks “will respond to this cut” to promote economic activity.

The bank has also reduced Liquidity Reserve ratio to 5% from 7.5%.

Kabambe says from now on, commercial banks will use the Lombard rate at 14.9% as the base lending rate.

He urged the banks to restructure themselves so that they offer loans at a low cost without affecting their operating profits.

RBM has since said it will continue engaging commercial banks to reduce their interest rate to reduce the cost of capital.

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POOR MAN FEEL IT
POOR MAN FEEL IT
2 years ago

PANO MWAVOMELA MP UJA ANANENA KUTI A MA BANK AKUPWETEKA ANTHU MWAONA TU SANATI KWATSALA MWEZI ITATU MUONA ZAMBILI

2019 bomma
2019 bomma
2 years ago

Its still too high indeed

2019 bomma
2019 bomma
2 years ago

its still too high indeed, would do it better than that

JJ Mbewe the Pathfinder
JJ Mbewe the Pathfinder
2 years ago
Reply to  2019 bomma

Tadziyamikani ndikochepa komwe mwapatsidwa ana a njoka inu

Duncan
2 years ago

This is all politics at best.

braveheart
2 years ago
SCARIOT-MAN
SCARIOT-MAN
2 years ago

Stupid political decisions, we have suffred the last 5yrs and now you want to look like you smart just because you our votes? rubbish RBM and stupid mathanyula politicians

Wiseman
Wiseman
2 years ago

Good development

Khima
Khima
2 years ago

Nkhani izi ku Malawi kuno ai ndithu zero comment…Thanks government for working hard to create an enabling condition.

Aka
Aka
2 years ago

After squeezing us all these years, what is the true meaning of this? School me please?

Kholowa
Kholowa
2 years ago

Who is still to benefit mulli or poor malawians?

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