A statement at the third Monetary Policy Committee (MPC) meeting last Friday has revealed that the Reserve Bank of Malawi (RBM) for maintaining the policy rate at 13.5%.

The Committee also maintained the Liquidity Reserve Requirement (LRR) ratio on both local currency and foreign currency deposits at 3.75%. “In arriving at this decision, MPC noted that although inflation developments were favourable in the first half of the year, there are emerging upward risks to the medium-term inflation path” says part of the statement.

During a press conference at the end of the committee in January, former RBM Governor Dalitso 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.