Tuesday, December 6Malawi's top news source

RBM raises policy rate to 18 percent

Share news to your friends

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 News
Felix Chitera Head of Alternate Channels

Felix is the Head of Channels at MyBucks since April, 2020. He is responsible for the digital channels and agency Read more

Chitera appointed Acting MD for FDH Bank

Chitera appointed Acting MD for FDH BankChitera appointed Acting MD for FDH BankAfrica-Press – Malawi. The Board of Directors of Read more

Katsonga Launch Pyxus Agriculture Limited Groundnut Processing Plant

Minister of Trade and Industry Mark Katsonga Phiri says the launch of the Pyxus Agriculture Limited Groundnut Processing Plant will Read more

Airtel sells its towers in Malawi for over K45 billion

Airtel Africa has sold its 723 towers in Malawi to Helios Towers, an independent telecommunications infrastructure company, for US$55 million Read more

AHL To Sell 30% Foreign Exchange To RBM

Reserve Bank of Malawi has ordered Auction Holdings Limited to begin a mandatory sale of 30 percent of it's foreign Read more

Airtel Malawi’s Telecommunications Tower Sold To London-based Helios Towers Plc

The sale of Airtel Malawi’s telecommunications tower to London-based Helios Towers plc will help Airtel to improve and strengthen its Read more

Banki Mkhonde women trained in business management

A Mchinji based organization, Girls Activist Youth Organization (GAYO) has trained village savings loan groups locally known as Banki Mkhonde Read more

Forex Shortage Hit Airline Business Operations

Malawi’s forex shortage is threatening operations in the airline business, creating uncertainty on the future of the industry, Business News Read more

Fuel Hike To AAffect Tobacco Market

Local tobacco producers are expressing fear that this year’s tobacco market will be affected by the recent fuel price hike. Read more

Leave a Reply

Your email address will not be published.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