Following another review by the Monetary Policy Committee, the Reserve Bank of Malawi has reduced the borrowing rate by 1.0%, resulting into 13.5% from 14.5% in January.

A statement by the Reserve Bank shows that Lombard rate has remained at 0.4 percentage point above the policy Rate, while the Liquidity Reserve Ratios also remained constant on local currency and foreign currency deposits at 5.0% and 3.75%, respectively.

In other developments, the statement by RBM has portrayed a positive outlook for the domestic economy in 2019, projecting a 5.0% growth from 4.0% in 2018.  The report reads, “Rebound expected to be supported by Recovery in agriculture sector, Improved power supply and Macroeconomic stability.”

The report also expected a lowered inflation rate to 5% in the first quarter of 2022, as well as a continued stability in the USD exchange rate.