Update: Following the Reserve Bank of Malawi's decision to cut its policy rate from 26 percent to 24 percent, the Bankers Association of Malawi says the move will help commercial banks increase lending to the private sector. According to Nyasa Times, Association president Phillip Madinga confirmed that banks are preparing to adjust their credit facilities to support business operations. The central bank's Monetary Policy Committee noted in its March 5 statement that headline inflation declined to 24.9 percent in January 2026 due to lower food prices. The committee also projected the national economy to grow by 3.8 percent this year.
Meanwhile, the National Bank of Malawi announced that it has set its new reference rate at 23.70 percent. According to a notice on the bank's official website, the new rate took effect on March 5. Economic analysts expect the adjustments to provide financial relief to consumers and businesses who had recently scaled back on borrowing due to high commercial lending costs.