The Monetary Policy Committee (MPC) of Reserve Bank of Malawi (RBM) has, at its second meeting for 2019 held from Thursday, decided to reduce the policy rate by 100 basis points from 14.5 percent to 13.5 percent.

RBM Governor Dalitso Kabambe confirmed of the development during media briefing in the commercial capital Blantyre today.

Kabambe said the committee arrived at this decision after observing that the positive macro-economic outlook envisaged during the first MPC meeting of 2019 remains firm.

The committee has, however, maintained the lombard rate at 0.4 percentage points above the policy rate, the liquidity reserve requirement (LRR) on local deposits at five percent and the LRR on foreign currency deposits at 3.75 percent.