Reply to thread

Message

[QUOTE="Munyaradzi Mafaro, post: 67516, member: 636"]
Malawi's business leaders are calling on policymakers to shift away from restrictive monetary approaches and instead address production constraints directly, arguing that interest rate adjustments have done little to control rising costs. Esmie Kanyumbu, who leads the Economic Association of Malawi, delivered the assessment after the Reserve Bank of Malawi held its policy rate steady at 26 percent following meetings held on October 28 and 29.

Kanyumbu stressed that elevated prices stem mainly from inadequate supplies rather than excess demand, meaning traditional central bank tools provide limited relief. She pointed to government programs like maize purchases from abroad but noted their effectiveness hinges on proper timing and delivery systems. The central bank acknowledged that headline inflation climbed to 28.1 percent during the third quarter of 2025, propelled by expensive fuel and weak budget discipline.

The association maintains that lasting economic balance requires expanded domestic output and reduced dependence on imports rather than continued rate increases. Authorities forecast 2.8 percent growth this year compared with 1.7 percent in 2024, with gains expected across farming, factories, extraction industries and travel sectors. However, without stronger measures targeting supply bottlenecks, price increases will likely continue despite elevated borrowing costs.
[/QUOTE]

Name