Days after the Reserve Bank of Malawi (RBM) lowered its interest rate to 18 percent, two commercial banks have responded to the interest rate cut.
The two banks, National Bank of Malawi (NBM) and Financial Holdings Limited (FDH) Bank, have lowered their lending rates from 31.5 to 27.5 percent respectively.
Economic expert Ben Kalua has applauded the slash of interest rates by the two banks arguing it is a “welcome development”.
Kalua urged banks in the country to respond quickly to the policy cut, arguing citizens are to plan as well for their economic activities.
Meanwhile seven other registered banks in Malawi are yet to respond to the new policy rate cut by the country’s central bank.
RBM disclosed that the slash is due to Malawi’s economic stability and projected economic growth due to good harvest.
Malawi was reported to have highest lending rates in the Southern part of Africa, a development that blocked many from having loans from the banks.
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Good development