Malawi central bank raises benchmark rate to 21 percent
Malawi's central bank has raised its benchmark interest rate to 21 percent from 16 percent, trying to put the economy on a more stable footing after a sharp devaluation of its kwacha currency.
The southern African country last raised its rate a few days after devaluating the kwacha in May to combat an acceleration in inflation.
The latest adjustment followed a meeting on Monday by the Monetary Policy Committee of Reserve Bank of Malawi (RBM), according to a directive by Governor Charles Chuka to commercial banks and obtained by Reuters on Tuesday.
The governor said the decision will assist to "stabilise the economy, restore balance in money markets, as well as improve the foreign exchange situation during the lean season."