The Reserve Bank of Malawi (RBM) RBM Governor, Dalitso Kabambe, has revealed that the recent two-day meeting of the Monetary Policy Committee (MPC), has resolved to keep the policy at 13.5%.

During a press conference at the end of the committee Kabambe said the committee had observed that although rising maize prices are likely to continue pushing up headline inflation in the first quarter of 2020, the elevation is deemed temporary and does not pose significant risks to the medium-term inflation outlook.

According to the central bank’s governor, RBM has adopted a symmetric band of 2 percentage points around inflation target point to keep up with global trends but maintains a 5% target by the first quarter of 2021.

On the other hand, the reaction to the resolve has been positive. Executive Director of the Economics Association of Malawi (Ecama), Kettie Nyasulu, said maintaining the policy rate at 13.5% amidst the recent rise in inflation rate indicates that the monetary policy is in a good place.