RBM maintains policy rate

The cost of borrowing is expected to continue being moderate following the decision by the Reserve Bank of Malawi (RBM) to maintain the policy rate at 26 per cent.

The rate is a benchmark rate for other rates such as the Lombard rate (the rate at which commercial banks borrow from the central bank).

The central bank’s Monetary Policy Committee has made the decision this week at its fourth meeting.

The committee has since increased the Liquidity Reserve Ratio to 10 percent.