Reserve Bank of Malawi maintains Policy Rate
The Reserve Bank of Malawi’s Monetary Policy Committee (MPC) has decided to keep the Policy Rate steady at 24.0 percent.
During their meeting on 6 August 2026, the Committee also opted to maintain the Liquidity Reserve Requirement (LRR) at 12.0 percent for local currency deposits and 3.75 percent for foreign currency deposits.
MPC chairperson Dr. George Partridge noted that although inflation has been moderating, it still significantly exceeds the Reserve Bank’s medium-term target of 5.0 percent.
On the international stage, the MPC highlighted increased uncertainty due to geopolitical tensions and persistent supply-chain issues.
While some volatility has subsided, global oil and fertilizer prices remain elevated, contributing to imported inflationary pressures that impact Malawi’s domestic price trends.
Looking forward, the Reserve Bank anticipates an average inflation rate of approximately 22 percent for 2026, a decrease from 28.4 percent in 2025, with further declines expected in the medium term.
However, it has cautioned that risks remain, particularly from global geopolitical tensions, supply-chain disruptions, and the possible emergence of El Niño during the 2026/27 agricultural season, any of which could undermine recent progress and sustain high inflationary pressures.
