Commercial banks in Malawi have reduced the reference lending rate to 20.4 percent for the month of June, down from 20.6 percent in May, according to Nyasa Times. The reduction extends a downward trend that has seen the benchmark rate fall from 25.2 percent in January. Financial experts attribute the lower rate to improving liquidity in the financial system, reduced government borrowing, and easing inflationary pressures. This market shift follows the Reserve Bank of Malawi's earlier decision to cut the central policy rate from 26 percent to 24 percent.
In international trade, the Office of the United States Trade Representative has proposed new Section 301 tariffs targeting 60 U.S. trading partners, including the European Union, Canada, China, and Japan. According to the agency, the proposed action imposes baseline tariffs of 10 to 12.5 percent on these countries for failing to enforce bans on importing goods made with forced labor. Malawian tobacco was specifically cited as an example of a forced-labor product that these nations are failing to block. The new measures are undergoing a public consultation period before implementation.