Reserve Bank of Malawi maintains policy rate at 24 percent

The Reserve Bank of Malawi (RBM) has decided to hold its policy rate at 24 percent following its fourth Monetary Policy Committee meeting held on October 28 and 29, 2026. The central bank aims to sustain progress in controlling inflation while supporting economic recovery. While the policy rate remains unchanged, the RBM increased the Lombard Rate, which governs interest for commercial banks accessing short-term borrowing, from 24.2 percent to 26 percent.

Headline inflation in Malawi declined to 20.1 percent in the third quarter of 2026, down from 22.9 percent in the previous quarter. This decrease was largely driven by a slowdown in food inflation, which dropped from 17.1 percent to 13.4 percent. However, non-food inflation remains high at 31.9 percent. The RBM projects average inflation of 22 percent for 2026 and 20 percent for 2027, with economic growth expected to expand by 2.8 percent in 2026.

Separately, the RBM issued a public warning regarding a forged document circulating online. The fake notice falsely claimed the Malawi kwacha had been devalued, suggesting the dollar selling rate had risen from MWK1,750 to MWK3,200. The bank confirmed the document was a forgery and urged the public to verify all announcements through official channels.