The Reserve Bank of Malawi has maintained its benchmark policy rate at 24.0 percent while increasing the Liquidity Reserve Requirement for local currency deposits from 10.0 to 12.0 percent, according to the Malawi Broadcasting Corporation. The monetary policy adjustment, finalized following committee meetings on April 29 and 30, aims to absorb excess liquidity in the banking system and stabilize prices. The central bank noted that inflation eased to 24.3 percent in the first quarter of 2026 due to improved food supplies, while the national economy is projected to grow by 3.8 percent this year.
Update: Following its recent formation, the Federation of Civil Service Unions has formally rejected the government's 10 to 20 percent pay adjustment and is now demanding a 100 percent salary increase, Nyasa Times reports. Union leaders stated that the current wage hike fails to offset the rising cost of living and the continued depreciation of the kwacha. The federation is also pressing the government to raise transport allowances from K30,000 to K150,000, arguing that high fuel prices are suppressing worker productivity.
In the private sector, limited access to formal credit continues to constrain local business growth, according to The Nation. Data from the World Bank's April 2026 Africa Economic Update indicates that 76 percent of Malawian non-farm household enterprises rely on personal savings or family support for startup capital, with only seven percent securing external financing. Although commercial banks recently reduced lending rates to approximately 20.8 percent, business operators indicate that strict collateral requirements and transaction costs continue to limit loan uptake.