An economic expert has applauded the Reserve Bank of Malawi (RBM) for slashing the lending rate to 18 percent effective Wednesday this week.
Economic expert Ben Kalua disclosed that Malawi has been waiting to get a cut in lending rate by the country’s central bank but economic glitches had forced the bank to hike the rate making it more challenging for businesspeople to access loans from commercial banks.
“This is what we have been waiting for from Reserve Bank, just like it is the case with other countries, the slash helps citizens to be economically empowered as they borrow money for businesses,” said Kalua.
He further urged the banks to follow the trend by cutting their lending rates to citizens for the country to achieve development.
“People had to deposit money with less interests but when getting loans they were charged high interests, it is like punishing someone who can help in development of the nation so banks must follow what reserve bank has done,” he said.
RBM said on Wednesday that the reduction has been inspired by domestic and global trends on economy in the world.
Governor for RBM Dalitso Kabambe said Malawi’s economic projection is also among the factors that have led to the slash.
Malawi was reported to have highest lending rates in the southern region of Africa, something that was seen to be blocking local investors.
56 thoughts on “A thumb up for Peter: Lending rate cut gets praise”
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Other things are better unsaid, you better talk of a thing directly benefiting a local Malawian.
Empower people with business skills and raise the fixed interest rate to motivate savers!
Borrowing from the bank will always harm the poor nomatter what.
another ASSET.AFRICAN SERIOUSLY SILLY ELECTORAL TACT.SO MALAWIANS ARE BUSY DANCING OVER THIS.WAIT FOR ELECTIONS TO GO….YOU WILL SEE!
But will that cut be aplicable to the already existing loans?
This is commendable so long as it does make some banks to implode
Khoma kamuzu anamanga bwino kwambiri nyumba iyi
That’s great Mr President!!!!! I hope that banks will do what the President has ORDERED.
Asiyeni a mcp ndi mbuli zokhazokha,zimawanyasa zinthu zikamayenda bwino
pali chabwino chikuyenda apa
Iwe zinthu zabwino sumazidziwa eti? Pali chabwino apa?
Commendable but we can do more
Inflation rate is going down while price of various goods is going up each and everyday, teach me what is happening?
kkkkkkkkk ndi zowonadi ka #Kwachaka kukulimba limbabe kazitolera timphamvu wayz.moti chichokeleni Lolemba m’paka lero ndikulephera kuti nditumize ka #Rand kanga ku malawiko cz ikusithidwa mosika, moti ndi kumapita kolipira ku Shopprite ndi ma store ena! koma ndi kawona mmene akusinthira ndi kumabwerera nayo ndikudikira isike kaye phamvu kkkkkkkk pamenepa khaya! nditani!!.
Ili pa bwanji rand amwene
The cut in the interest rate ndiye kuti anthu azikwanisa kubeereka ndalama ku bank mkumapanga ma business mkumapanganso ma profit mosavuta…zikatero dziko limatukuka
Ndikuona kuti ambiri omwe apanga comment do not understand economics… Don’t expect kuti pofika next week zinthu zisintha or kutsika mtengo… Its a process my friends but all in all this is a good development.
Economically this is good development, congratulation to everyone who has contributed to this. however, on the other side am so worried if it comes to hospitals~drugs and equipments shortage eg QECH a mother hospital in southern region kusoweka totengera blood sample ndikuuza guardian kuti akagule ku Mwawiwanthu ptv hospital. may be this side should be corrected first before u raise that thumb to PM. now it should only go to RBM. PM should b last when all sectors r moving smooth.
Nanga magetsi akamazimazima, Peter amagwira ku Escom? That’s why I said at this forum kuti most of us don’t know what we want in this country. We need a lot of civic education. Ambirife are not ourselves, we dance to the tune of your political masters as such you are tethered and manipulated. You have become their slaves. Be neutral and objective and you shall be free physically, psychologically, spirituality, etc etc!
Koma president wa dziko lino iweyo umamudziwa?
Do you know who I am, what I do for a living, and how old I am to ask me such a question? Just contribute to the debate and stop being personal with me, amwene. Kambani nkhani yomwe ilipoyi.