The Reserve Bank of Malawi has kept its main interest rate (Policy rate) unchanged at 24.0 percent, while increasing the amount of money commercial banks must hold in reserve to help control inflation.
Following its meeting on 29–30 April 2026, the Monetary Policy Committee (MPC) raised the Liquidity Reserve Requirement (LRR) for local currency deposits from 10.0 to 12.0 percent.
The move is intended to reduce excess liquidity in the banking system and slow down the growth of money in circulation.
The decision comes as inflation continues to ease. Prices rose by 24.3 percent in the first quarter of 2026, down from 27.7 percent in the previous quarter, mainly due to improved food supply.
By maintaining the policy rate, the Central Bank aims to continue reducing inflation, while keeping the economy stable. Inflation is projected to average 22.0 percent in 2026, with a longer-term goal of bringing it down to 5.0 percent.
Meanwhile, economic growth is expected to improve to 3.8 percent this year, supported by stronger performance in agriculture, mining and manufacturing.
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