First Merchant Bank (FMB) in Malawi has disclosed that it has slashed interest rates effective today.
This follows the announcement of a cut in interest rate to 18 percent by Reserve Bank of Malawi (RBM) due to economic stability and projected economic growth.
Announcing the development, FMB Chief Finance Officer Michael Kadumbo said the bank has slashed the rate from 27.5 percent to 25 percent effective August 24.
FMB becomes the third bank to cut interest rates following the new policy rate set by the Reserve Bank of Malawi last month.
Financial Holdings Limited (FDH) Bank and National Bank of Malawi were the first banks reported to have lowered interest rates after the new policy.
Malawi was reported to have highest lending rates in the Southern part of Africa, a development that blocked many people from accessing loans from banks.
