Ecama backs Malawi's tight monetary policy
The Economics Association of Malawi supports the Reserve Bank's decision to keep interest rates high due to inflation and El Niño.
The Economics Association of Malawi (Ecama) has endorsed the Reserve Bank of Malawi (RBM)’s decision to maintain a tight monetary policy. Ecama stated that ongoing inflationary pressures and potential El Niño impacts make lowering interest rates unadvisable.
At its fourth meeting of 2026, held between October 27 and 28, the Monetary Policy Committee (MPC) decided to keep the Policy Rate at 24 percent. The committee also maintained the Liquidity Reserve Requirement (LRR) for local currency deposits at 12 percent and for foreign currency deposits at 3.75 percent.
Ecama's backing comes as the RBM aims to control inflation and mitigate risks associated with the El Niño weather phenomenon.
Why it mattersMalawi's tight monetary policy, supported by Ecama, affects the cost of borrowing and the overall economic climate for businesses and consumers.