Reserve Bank of Malawi Leaves Rate at 24%

2026-10-28 16:00 By Luisa Carvalho 1 min. read

The Reserve Bank of Malawi kept its policy rate unchanged at 24% at its October 2026 meeting.

The Committee noted that although inflation has continued to moderate, it remains significantly above the Reserve Bank’s medium-term objective of 5%, and risks to the inflation outlook remain elevated.

The annual inflation rate slowed for the fifth straight month to 19.4% in September 2026, down from 20% in August.

Headline inflation is expected to average 22% in 2026 and 20% in 2027 (vs prior estimate of 18.5%).

Significant upside risks remain, including heightened geopolitical tensions and the increased likelihood of El Niño during the 2026/27 agricultural season.

Economic growth is projected at 2.8% in 2026, supported by improved agricultural production, before accelerating to 3.8% in 2027.

The central bank also maintained the reserve requirements unchanged but raised the Lombard Rate spread from 0.2 to 2.0 percentage points above the policy rate to strengthen liquidity management.



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Reserve Bank of Malawi Leaves Rate at 24%
The Reserve Bank of Malawi kept its policy rate unchanged at 24% at its October 2026 meeting. The Committee noted that although inflation has continued to moderate, it remains significantly above the Reserve Bank’s medium-term objective of 5%, and risks to the inflation outlook remain elevated. The annual inflation rate slowed for the fifth straight month to 19.4% in September 2026, down from 20% in August. Headline inflation is expected to average 22% in 2026 and 20% in 2027 (vs prior estimate of 18.5%). Significant upside risks remain, including heightened geopolitical tensions and the increased likelihood of El Niño during the 2026/27 agricultural season. Economic growth is projected at 2.8% in 2026, supported by improved agricultural production, before accelerating to 3.8% in 2027. The central bank also maintained the reserve requirements unchanged but raised the Lombard Rate spread from 0.2 to 2.0 percentage points above the policy rate to strengthen liquidity management.
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