The Reserve Bank of Malawi left its benchmark policy rate unchanged at 16 percent at its July 2018 meeting, saying that risks to inflation outlook persist despite a recent reduction in inflation to 8.9 percent in May 2018. Policymakers added that the decision also aims to support disinflation towards the medium term target of 5 percent. GDP is expected to grow by 4 percent in 2018, down from 5.1 percent in 2017 due to a slump in agriculture output. The lombard rate was also kept at 18 percent and the liquidity reserve requirement at 7.5 percent. Interest Rate in Malawi averaged 25.16 percent from 2001 until 2018, reaching an all time high of 75.53 percent in February of 2001 and a record low of 13 percent in August of 2010.
Interest Rate in Malawi is expected to be 16.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Malawi to stand at 14.00 in 12 months time. In the long-term, the Malawi Interest Rate is projected to trend around 15.00 percent in 2020, according to our econometric models.