RMB alters policy rates

The Reserve Bank of Malawi (RBM) just raised the benchmark policy rate by 200 basis points to 26 percent.

The hike of the policy rate, which is the key driver of interest rates on loans, will in turn compel commercial banks to raise their interest rates from the prevailing 23.6 percent, raising the price of loans even further.

In a statement of the Second Monetary Policy Committee (MPC) of 2023, RBM Governor Wilson Banda said the committee observed that the high inflation environment is not conducive for growth.

He said it was then resolvedthat a monetary policy response is required to contain inflationary pressures and restore price stability.

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