The Monetary Policy Committee (MPC) has resolved to maintain the policy rate at 12% for the third time this year.

The third MPC meeting took place from July 29 to 30 where it decided to retain the policy rate at 12.0%.

According to the Reserve Bank of Malawi (RBM) the decision to maintain the policy rate at 12 % was arrived at due to inflationary pressures that continue to rise especially from non-food commodities.

Despite this being the case the decision also borders on the fact that there is need to contain the inflationary pressures and support economic recovery from the impact of COVID-19 pandemic.