Reserve Bank of Malawi (RBM) has revealed that it is aiming at reducing the policy rate further to 11%, considering continued decline in inflation and sustained economic gains.

RBM Governor Dalisto Kabambe was positive enough to predict that this year’s maize production is likely to get the lowest inflation rate ever since 1990 this year, with growth projected at 5%, up from 4.2% in 2018. Kabambe also aimed at moving the inflation rate to 5%.

“As inflation rate continues to go down, our objective is to ensure that inflation rate goes down to 5%, our policy rate would be at 11%. Looking at these macro-economic indicators, we all agree that our economy has indeed recovered.” said Kabambe. Recently the investment management and advisory firm, Alliance Capital predicted a downward review of the policy rate.