Malawi's central bank maintained its benchmark interest rate at 26 percent after officials met on Tuesday and Wednesday to review the country's economic conditions. The Reserve Bank also kept the Lombard Rate 20 basis points above the policy level and maintained reserve requirements at 10 percent for local currency deposits and 3.75 percent for foreign holdings.
Governor Macdonald Mafuta Mwale stated that inflation accelerated to 28.1 percent in the third quarter, up from 28 percent previously. Officials raised their annual projection to 28.9 percent from 28.5 percent as fuel costs climbed and fiscal pressures continued.
The committee praised government maize imports aimed at reducing food shortages, but stressed that stronger budget discipline and supply reforms remain necessary. Policymakers expect the economy to expand 2.8 percent this year compared with 1.7 percent in 2024.
The kwacha traded at 1,750.37 per dollar at the end of September, while foreign currency availability stayed limited. Officials saidthe current monetary policy remains appropriate as food and budget measures begin producing results.
Governor Macdonald Mafuta Mwale stated that inflation accelerated to 28.1 percent in the third quarter, up from 28 percent previously. Officials raised their annual projection to 28.9 percent from 28.5 percent as fuel costs climbed and fiscal pressures continued.
The committee praised government maize imports aimed at reducing food shortages, but stressed that stronger budget discipline and supply reforms remain necessary. Policymakers expect the economy to expand 2.8 percent this year compared with 1.7 percent in 2024.
The kwacha traded at 1,750.37 per dollar at the end of September, while foreign currency availability stayed limited. Officials saidthe current monetary policy remains appropriate as food and budget measures begin producing results.
