Thursday, March 28
Shadow

RBM raises policy rate to 18 percent

By Benadetta C. Mia

The Reserve Bank of Malawi has raised the policy rate to 18 percent, attributing the change to continued underperformance of the economy and the weakening of the Kwacha currency.

In a statement released by the Central Bank which has been signed by its governor Dr Wilson Banda, the bank held it’s 4th Monetary Policy Committee for 2022 on 26th October where it was decided to raise the policy rate to 18 percent from 14 percent.

According to Banda, the decision was necessary to restore price stability which is essential for reviving and sustaining economic growth.

Banda noted that high inflation could frustrate the country’s economic recovery process hence the decision to raise the policy rate.

Meanwhile the bank has projected a slow down in economic growth for 2022 to 1.7 percent from 4.2 percent in 2021.

Banda cited high inflation rate, fuel and power shortages as well as the Russia-Ukraine war as some key factors that have necessitated a downward review on this year’s economic growth projections.

On the other hand, trade deficit continues to widen as in the third quarter of 2022 Malawi registered a trade deficit of K434.2 billion as compared to K252.2 billion registered in the second quarter.

Related Posts

DPP Blues Rebels Brings Division In

DPP Blues Rebels Brings Division In

The way Charles Mchacha is castigating the Leader of Opposition in Parliament, Hon Kondwani Nankhumwa, is just testimony enough that Read more

Malawi Freedom Network advice President Banda to fight corruption

If you thought Malawians are lazy people, I bet you a Dinosaur, think twice and you will know, check in Read more

Malawi Government Faulted Over Arrests of Coup Suspects

The recent arrest in Malawi of three opposition politicians accused of planning to unseat President Peter Mutharika is dissent from Read more

Allegations of a coup plot sour diplomatic ties

The US embassy has denied involvement in an alleged plot to overthrow the president, Peter Mutharika. Analysis Media reports that Read more

Leave a Reply

Your email address will not be published. Required fields are marked *

President Lazarus Chakwera has officially opened the Blantyre International Cancer Centre, The private health facility, has been constructed by the Thomson and Barbara Mpinganjira Foundation