Update: The Reserve Bank of Malawi has maintained its benchmark lending rate at 24 percent to support the country's ongoing disinflation process and restore macroeconomic stability, Nation Online reports. Following a two-day Monetary Policy Committee meeting that concluded on April 30, RBM Governor George Partridge stated that holding the rate steady reflects a cautious approach to secure recent gains in inflation reduction.
The decision comes as Malawi's headline inflation eased for five consecutive months, dropping to 23.8 percent in March, according to National Statistical Office data cited by Nation Online. The central bank projects that inflation will average 22 percent in 2026, a decline from the 28.4 percent recorded last year.
Alongside the policy rate decision, the central bank increased the liquidity reserve requirement for local currency deposits from 10 percent to 12 percent to absorb excess liquidity in the banking system. Furthermore, the RBM forecasts that economic growth will reach 3.8 percent this year, up from 2.7 percent in 2025, driven by expected improvements in the agriculture, mining, and manufacturing sectors.