Reserve Bank Governor Flags Social Media as New Inflation Influencer, Rules Out Further Kwacha Devaluation
Published on May 20, 2025 at 7:30 PM by Edgar Naitha
Reserve Bank of Malawi Governor Dr. Mafuta Mwale has highlighted social media speculation as a modern challenge influencing inflation, saying it is an issue he was never taught in economics school.
Speaking during Public Affairs Committee (PAC) all-inclusive meeting in Blantyre, Dr. Mwale said traditional economic models do not account for the impact of misinformation and speculation spreading rapidly online.
“I was told in school that when inflation is high, reduce interest rates—but not what to do with this,” he said, referring to the growing influence of social media narratives on public perception and economic behavior.
Dr. Mwale also ruled out further devaluation of the kwacha, arguing that doing so would only deepen the economic hardship faced by ordinary Malawians.
He stressed that the focus should now be on stabilizing the currency and restoring public confidence, rather than resorting to further depreciation.
His remarks come amid growing economic concerns and heightened inflationary pressures in the country.
