Africa-Press – Malawi. Average inflation slightly increased from 27.4 to 28.5 in the second quarter of 2025 due to maize price increase among other factors, figures from the Reserve Bank of Malawi (RBM) show.
In a presentation on Monday during the third Monetary Policy Forum in Mzuzu, RBM Director of Financial Markets Chakudza Linje attributed the increase to shortage of forex and high cost of production.
Chakudza LinjeLinje said RBM intends to bring together financiers and those have bankable projects to increase production that will spike more exports and ensure availability of forex in the country.
“We want to bring those who have investing capacity forward and see how they can be financed in ways that boost production,” she said.
During its 3rd meeting of 2025, MPC maintained the policy rate—the rate at which commercial banks use when borrowing from the central bank as lender of last resort— at 26 percent.
The committee noted a decline in inflation from 30.7 percent in February to 27.1 percent in June 2025 as a key factor to arrive at the decision.
Linje said that the decision was based on risk considerations and is designed to achieve faster reduction in inflation rates.
One of the participants, Patrick Kuyokwa, said there is need for deliberate policies that will help reduce cost of production.
He noted that when the general production is high in cost, the produce is minimal and prices are high depending on demand.
“We are capable of producing enough but we have to lower our factors of production and produce at scale,” he said.
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