The benchmark interest rate in Malawi was last recorded at 12 percent. source: Reserve Bank of Malawi

Interest Rate in Malawi averaged 23.92 percent from 2001 until 2020, reaching an all time high of 75.53 percent in February of 2001 and a record low of 12 percent in November of 2020. This page provides - Malawi Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Malawi Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on January of 2021.

Interest Rate in Malawi is expected to be 12.00 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 11.00 in 12 months time. In the long-term, the Malawi Interest Rate is projected to trend around 11.00 percent in 2021, according to our econometric models.

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Malawi Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
12.00 12.00 75.53 12.00 2001 - 2020 percent Daily

Calendar GMT Actual Previous Consensus TEForecast
2020-01-30 01:30 PM 13.5% 13.5% 13.5%
2020-04-03 11:15 AM 13.5% 13.5%
2020-07-31 10:00 AM 13.5% 13.5% 12.5%
2020-11-06 02:20 PM 12% 13.5%
2021-01-29 02:00 PM 12% 12%

News Stream
Malawi Cuts Key Interest Rate to 12%
The Reserve Bank of Malawi lowered its benchmark policy rate by 150 bps to 12 percent at its November 2020 meeting, bringing the rate to its lowest level on record. The decision is aimed at supporting economic recovery and job creation. Policymakers noted that the headline inflation has been declining since January 2020 and the inflation outlook appears favourable. Inflation is now projected to average 8.6 percent in 2020 from an earlier estimate of 9.8 percent. In 2021, it is anticipated that inflation will continue to decline. Meanwhile, the economy is projected to grow 1.2 percent in 2020, far below 5.1 percent in 2019, reflecting the adverse impact of the pandemic on manufacturing, tourism and accommodation, health services and wholesale and retail trade sectors.
Malawi Holds Key Interest Rate Steady at 13.5%
The Reserve Bank of Malawi kept its benchmark policy rate unchanged at 13.5% during its July 2020 meeting chaired by the newly-appointed Governor Wilson Banda. Policymakers said that the adopted policy stance is appropriate to deal with emerging upward risks to the medium-term inflation path whilst also supporting economic activity hit hard by the global pandemic. Growth projection for 2020 was revised down to 1.9% from an earlier forecast of 5.5%, on account of the impact of protracted political uncertainty in the first half of the year and the COVID-19 pandemic including the associated containment measures. Inflation is expected to accelerate to 9.8% in 2020 from 9.4% a year before, amid impending significant inflationary pressures emanating from a gradual pick-up in food prices (largely maize), increased short term pressure on the exchange rate, increase in global oil prices and increased public sector financing requirements.
Malawi Keeps Key Interest Rate at 13.5%
The Reserve Bank of Malawi left its benchmark policy rate steady at 13.5% during an unscheduled two-day meeting in April of 2020 when it announced the release of USD 16 million across the banks to enable them to support sectors hit by the Covid-19. In this regard, the lombard rate and the liquidity reserve requirement rate were cut to 13.7% and 3.75%, respectively. Policymakers added that maintained the policy rate to mitigate against potential upward risks from the pandemic while monitoring developments as they evolve and act as and when necessary. According to them, the recent strong agricultural harvests have boosted growth, but the evolution for the remainder of the year will depend on the impact of the pandemic on several sectors. Still, economic growth is seen rising further to 6-7% in the medium term, backed by the infrastructure, access to credit and crop diversification. Inflation is expected to slow to 9.3% in 2020 from 11.5% a year before, as food inflation should ease.
Malawi Leaves Interest Rate Steady at 13.5%
The Reserve Bank of Malawi kept its benchmark policy rate unchanged at 13.5% during its January 2020 meeting, saying that expected food price pressures in Q1 2020 are temporary and do not pose a risk to the medium-term inflation target of 5% (+/-2%). Policymakers noted that headline inflation averaged 9.4% in 2019, slightly higher than 9.2% in 2018 and bank's projections, and it is projected to average 8.8% in 2020, amid favourable weather conditions and continued exchange rate stability. The GDP is estimated to have grown 5% in 2019 from 4% in 2018, largely driven by recovery in the agriculture sector. For 2020, the GDP growth is seen between 5-6%, supported by agriculture as well as favourable macroeconomic conditions. The Lombard rate and the Liquidity reserve requirement were also left at 13.9 percent and 5.0 percent, respectively.

Malawi Interest Rate
In Malawi, interest rates decisions are taken by the Reserve Bank of Malawi’s Monetary Policy Committee. The RBM’s official rate is the key interest rate.