The Reserve Bank of Malawi (RBM) has maintained the policy rate at 12 percent, a move Consumers Association of Malawi (Cama) says will calm the market.
RBM Governor Wilson Banda in a statement issued on Thursday after a two-day meeting of the Monetary Policy Committee (MPC) said the decision was deemed necessary though inflation pressures are mounting stating that the sources are considered transitory and likely to dissipate after the lean period.
The governor said the MPC also maintained Liquidity Reserve Requirement (LRR) ratio on domestic and foreign currency denominated deposits at 3.75 percent; and the Lombard Rate at 20 basis points above the policy rate.
