The Reserve Bank of Malawi (RBM) Monetary Policy Committee has maintained the policy rate at 12 percent.
According to a statement from the committee, the decision has been necessitated by the stability of inflation rate in 2020.
The policy rate was dropped early November last year with 150 basis points from 13.5 percent.
After the drop, banks dropped reference rate (a benchmark for other rates such as interest rate) twice which now stands at 12.1 percent.
The maintained policy rate is expected to continue easing the cost of borrowing.
Policy rate is the rate at which commercial banks borrow from the central bank.