The Reserve Bank of Malawi (RBM) has cautioned that a rush in amending the Financial Services Act might have negative consequences on the economy.

Among other issues which officials from the central bank presented at an interface meeting with the joint parliamentary committee on interest capping were that fixing Treasury bill rate is already covered under the Public Finance Management Act (PMFA).

They further said that based on rising public financing requirements government operations may be crippled.

Speaking to the press after the meeting, Reserve Bank governor Dalitso Kabambe said the issue of interest rates cuts across different factors including how the economy is performing.

He said the central bank has been doing all it can is to reduce the interest rate.

Chairperson for the joint parliamentary committee on interest capping Alekeni Menyani admitted that a number of careful steps needed to be taken following issues raised by different stakeholders.

He guided the committee and the central bank to do their own research on the issues around the Financial Interest Rate Capping Bill.

Menyani said a date will be set when the two parties will discuss the bill from one perspective.

The Financial Interest Rate Capping Bill seeks to amend the Financial Services Act by inserting part 5, which is a new Section 34(A), to allow for the regulation of interest rates.