Economic recovery on track: interest rate to go down

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The outcry on Malawi having the highest lending rates has been calmed as the Reserve Bank of Malawi (RBM) has slashed the rate by 4 percent.

The rate has been reduced to 18 percent, the bank said on Wednesday.

This follows Monetary Policy Committee meeting that has reviewed the lending rates offered by the central bank, paving the way for commercial banks to cut their interest rates.

Speaking to members of the press in Lilongwe on Wednesday, RBM governor Dalitso Kabambe said the slash is due to stable domestic and global economic trends.

Kabambe added that the low inflation rate for the country at present has also played a role in cutting the lending rates.

“Our economy now is far, far much better than it has been for a while, our inflation is now at 12.3 percent as of May and our import cover has been much much better,” said Kabambe.
The RBM governor pleaded with commercial banks in the country to respond to the monetary policy reduction to ensure that end customers benefit from the slash.

“Currently in terms of waited interests on deposit is at 8 percent and for the waited interest on money they are lending out is around 36 percent, the microfinance is as higher as 86 percent effective rates, these are the highest spread in the region (Southern Africa),” added Kabambe.

Malawi’s rates are faulted to be the highest in SADC region, a development that has witnessed small businesses failing to grow due to lack of funds.

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11 Comments

  1. Congrats to mr president.. This is good news. But don’t promise us empty please go on with this way and stuffs in our country should climes down of prices.. Thanks I respect this good story. So that maybe I will vote for you mr pter mutharika. And we need more and more about this antll country getting better

  2. Yes indeed the interest rates are going down but those positive things that you are religiously predicting are not comingforth,what we have here are the economic methods that only work on the paper,in reality we are still suffering….in short,the cake is not shared equally

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