Commercial banks have adjusted upwards the reference rate—an interest rate benchmark used to set other interest rates—to 25.1percent for February 2025 from 25.2 percent last month.
At 25.1 percent, the reference rate is 0.9 percentage points away from the bank rate—the rate at which commercial banks borrow from the central bank as the lender of last resort— currently at 26 percent.
Commercial banks have in separate statements notified their customers of the change in reference rate from Wednesday February 5.
Reads a statement from Standard Bank plc: “We wish to inform you that the reference rate, which is also the base lending rate, for May is 25.1 percent from 25.2 percent in the previous month.”
Similarly, National Bank of Malawi plc, CDH Investment Bank and Ecobank have also indicated they have maintained the rate at 25.1 percent.
During the First Monetary Policy Committee Meeting last week, Reserve Bank of Malawi (RBM) maintained at 26 percent the policy rate, a key driver of interest rates on loans.
RBM Governor MacDonald Mafuta-Mwale said the decision is meant to support economic activity and boost foreign exchange reserves.
He said the MPC will enhance its engagement with stakeholders across the public and private sectors to collaboratively implement financial sector reforms and introduce incentives for the real sector.
