Malawi cuts policy rate in line with falling inflation
MPC says it could have cut further but for budget uncertainty
The Reserve Bank of Malawi yesterday cut its policy interest rate by 2.5 percentage points to 22.5%, citing a downward trend in inflation – expected to hit an annual rate of 20.5% by year-end – and "projected relative stability in the exchange rate".
The move took the Lombard rate down from 27.0% to 24.5%. The monetary policy committee (MPC) maintained the Liquidity Reserve Requirement (LRR) and the daily observable LRR at 15.5% and 12.0%, respectively.
The major determinant of monetary growth
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