BLANTYRE (Reuters) – Malawi’s central bank said on Thursday that it had raised its main lending rate by 400 basis points to 18% in a bid to tackle high inflation.
The southern African nation has been struggling with acute forex shortages and has reached a staff-level agreement with the International Monetary Fund for emergency financing.
“This decision was deemed necessary to restore price stability, which is essential for reviving and sustaining high economic growth,” the central bank said in a statement on the interest rate decision.
(Reporting by Frank Phiri; Writing by Bhargav Acharya; Editing by Alexander Winning)
