Tuesday, January 19, 2021
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home News National News

RBM retains bank rate at 25%

by Johnny Kasalika
14/03/2013
in National News
2 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

The Reserve Bank of Malawi (RBM) has for the second time resolved to maintain the bank rate at 25 percent barely three months after the central bank hiked the policy rate from 21 percent to 25 percent last December.

RelatedHeadlines

NGO cautions on Covid-19 students

Csec, Isama want clarity on schools’ closure

Fake injury claims soar

This means that commercial banks in the country’s financial system will continue to borrow money from RBM at 25 percent to patch up their liquidity levels for lending out to their respective clientele.

However, one senior banker on Wednesday confided in The Nation that the country is currently experiencing a liquidity squeeze, with treasury bills yields hitting 45 percent.

Said the banker: “RBM is heavily borrowing from the market. In fact, [commercial] banks are contemplating to adjust rates upwards, including lending rates.”

RBM’s decision to maintain the indicative cost of borrowing follows a resolution of the Monetary Policy Committee (MPC) of RBM—chaired by central bank governor Charles Chuka—which convened on Tuesday to review recent economic developments.

“Based on regular economic and monetary analyses, the MPC decided to keep the policy rate and the Liquidity Reserve Requirement (LRR) unchanged at 25.0 percent and 15.5 percent, respectively,” reads the latest minutes of the second MPC for the year 2013.

LRR is a fraction of depositors’ money which commercial banks are obligated to deposit with the central bank.

RBM raised the base rate by 19 percent to 25 percent on December 3 2012, seemingly in an attempt to stabilise the kwacha and contain high inflation.

However, despite tight monetary policy stance taken by RBM, headline inflation rate continues to accelerate, edging up to 35.1 percent in January from 34.6 percent recorded in December, 2013.

Commenting on the monetary developments, RBM says aligned with the monetary expansion, the liquidity situation improved in the first two months of 2013 as evidenced by excess reserves doubling to about K8 billion in February 2013.

Previous Post

Amaa, Fame in fashion extravaganza

Next Post

PP, DPP trade barbs on violence

Related Posts

Kondowe: What support will be provided to them?
National News

NGO cautions on Covid-19 students

January 19, 2021
The CSOs want clarity on what will happen during the schools’ closure
National News

Csec, Isama want clarity on schools’ closure

January 19, 2021
accident | The Nation Online
National News

Fake injury claims soar

January 19, 2021
Next Post

PP, DPP trade barbs on violence

Trending Stories

  • Not yet given retirement benefits: Mutharika

    Tonse faulted on former presidents’ benefits

    0 shares
    Share 0 Tweet 0
  • Wasteful Chakwera

    0 shares
    Share 0 Tweet 0
  • Laz Chakwera’s Covid-19 strategy

    0 shares
    Share 0 Tweet 0
  • Covid-19 initiative raises K18.3m in 2 days

    0 shares
    Share 0 Tweet 0
  • HRDC takes govt to task over Covid-19 strategy

    0 shares
    Share 0 Tweet 0

Opinions and Columns

My Thought

Don’t relax, Covid-19 still here

January 17, 2021
Political Uncensored

Maddening chaotic virus

January 17, 2021
Emily Mkamanga

Chakwera has to instill unity

January 17, 2021
People’s Tribunal

Perilous times and the need for accountability

January 17, 2021
  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2021 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.