MEJN challenges RBM on reduced policy rate

MEJN challenges RBM on reduced policy rate

Dalitso Kubalasa

The Malawi Economic Justice Network- MEJN has challenged the reserve bank of Malawi to share how the reduced policy rate is trickling down to customers transacting with commercial banks.

This comes following the reduction of the policy rate, which is the rate at which the commercial banks borrow from the central bank from eighteen percent to sixteen percent.

Reserve bank governor Dalitso Kabambe is on record saying the reduction is in line with the recent disinflation and the desire to consolidate the gains made in stabilizing the economy.

But commenting on the development, executive director for Malawi Economic Justice Network Dalitso Kubalasa says such changes have not yielded results before because commercial banks are reluctant to comply.

He said as a regulator the central bank should come out clear on what measures government has put in place to address the problem of non-compliance by the commercial banks.

Meanwhile the Tobacco Association of Malawi-TAMA has welcomed the move saying it will not affect the earnings tobacco farmers realized in the past season.

Sam Kalimba said this means the farm inputs will either be stable or down which is good news for the farmers because they will have enough resources to plan for the next growing season.

mejn rbm

Post Author: Chiko Chiumya

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