Reserve Banks of Malawi and India Hold Policy Rates as Inflation Pressures Ease

The Reserve Bank of Malawi kept its benchmark policy rate unchanged at 24.0% while inflation fell to 22.9% in the second quarter and is projected to reach 22.0% by year‑end. Governor George Partridge said the hold will let earlier tightening work through the economy and support modest growth of about 2.8% in 2026, despite risks from global uncertainty, high import costs and weather‑related food price pressures.

The Reserve Bank of India also left its repo rate steady at 5.25%, citing near‑term inflation risks from food and fuel, a weakening rupee and elevated oil prices. GlobalData forecasts Indian real GDP growth near 6.7% in 2026, with inflation staying above the RBI’s 4% target but not out of control. Ongoing US tariffs on Indian exports and external shocks were highlighted as reasons for maintaining a neutral stance.

Both central banks opted for a cautious approach, aiming to balance inflation containment with support for economic growth amid external headwinds.