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Reserve Bank of Malawi (RBM) has revised upwards the policy rate—also known as the bank rate—by two percentage points, a year after maintaining the rate at 12 percent.
RBM Governor Wilson Banda who also chairs the Monetary Policy Committee (MPC) of the central bank, said in a statement issued today that the bank has raised the rate to 14 percent.
The hiking of the bank rate—the rate at which commercial banks borrow from the central bank as the lender of last resort—comes at a time authorities are battling a high inflation rate of 14.1 percent as of March, according to National Statistical Office (NSO).
Source:NPL
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