Chakwera commends RBM for policy rate cut


Leader of opposition Malawi Congress Party (MCP) has hailed Reserve Bank of Malawi (RBM) for reducing the policy rate saying the central bank agrees with his party’s position.

Chakwera said the move is in line with the Interest Capping Bill which his party introduced in Parliament last year but was shot down by ruling party legislators.

“I am pleased to hear that even though some MPs made the error of conniving to defeat the Interest Capping Bill that we brought to Parliament during the last sitting, the Reserve Bank has just come around to our way of thinking and reduced the Policy Rate from 16% to 14.5%.” Chakwera wrote on his Facebook page.

According to Chakwera, it has always been the MCP’s position that lending rates charged by commercial banks are high.

“One of the reasons I look forward to serve you as President is the opportunity to work with the legislature and the Central Bank in formulating and implementing more people-centred monetary policies.

“When I say that my government will be built on the #ChakweraHigh5 pillar of #ServantLeadership, part of that involves working with policy makers to enlarge the economic capacity of Malawians, not just the profit margins of commercial banks,” he said.

The Leader of Opposition added that his aim is to take one million Malawians out of poverty and into the middle class through the growth of Small to Medium Enterprises.

He said: “We cannot do that without a more responsive Central Bank, which my government is set to deliver.”