Monetary Policy Committee Raise policy rate to 22%

The Monetary Policy Committee (MPC) has raised the Policy Rate to 22.0 Percent.

The decision to raise the policy rate was made during a meeting by the MPC on 26th and 27th April 2023 to review the recent economic developments and decide on the monetary policy stance.

According to a Reserve Bank of Malawi statement, the change follows a worsened inflation outlook due to unforeseen domestic shocks.

The Central Bank said the cyclone Freddy in Southern Region and localized drought in
the north had worsened the food supply hence contributing to inflationary pressures.

The Committee also observed that the rehabilitation of infrastructure damaged by the cyclone could further raise inflation, requiring further  tightening of monetary policy to mitigate the effects of the same.

MPC has also noted that the global economic outlook will remain subdued and this will have an impact on Malawi’s economic growth.