Economic experts supported the Reserve Bank of Malawi's decision to keep interest rates at 26 percent during a monetary policy forum in Lilongwe. Inflation decreased from 30.7 percent in February to 27.1 percent by June, yet officials remain cautious about further changes. Chakudza Linje from RBM's Financial Markets division explained that food price increases and external pressures still threaten economic stability. The central bank fears that reducing rates could reverse recent progress and harm the recovery process. Cross-sector cooperation between the agriculture, mining, and manufacturing sectors will strengthen foreign exchange reserves.
Grace Kumchulesi from the National Planning Commission stressed that monetary policy alone cannot solve Malawi's economic challenges. Structural reforms and increased investment in productive industries remain essential for achieving long-term development goals. The government must actively reduce private sector risks to attract capital flows and support export growth. Economic projections show growth rising from 1.7 percent in 2024 to 2.8 percent next year. The Reserve Bank will reassess conditions during its October meeting to determine future policy adjustments.
Grace Kumchulesi from the National Planning Commission stressed that monetary policy alone cannot solve Malawi's economic challenges. Structural reforms and increased investment in productive industries remain essential for achieving long-term development goals. The government must actively reduce private sector risks to attract capital flows and support export growth. Economic projections show growth rising from 1.7 percent in 2024 to 2.8 percent next year. The Reserve Bank will reassess conditions during its October meeting to determine future policy adjustments.
