The Economics Association of Malawi (ECAMA) has commended the Monetary Policy Committee (MPC)’s decision to maintain the policy rate which is currently at 26%, citing persistently high inflation and ongoing risks, including food shortages.
Speaking on Monday during the fourth 2025 Monetary Policy Technical Forum in Lilongwe, ECAMA Executive Director, Dr. Esmie Koriheya Kanyumbu, said ECAMA agrees with the Committee’s stance for the better impact on economic stand.
“We are approaching the rainy season, and although government is importing maize from Zambia, the success of this initiative in reducing food prices will depend on timely importation and distribution,” said Dr Kanyumbu.
Dr. Kanyumbu further disclosed that loosening the monetary policy would worsen the country’s forex shortages, potentially increasing non-food inflation, while tightening the policy would yield minimal impact.
She therefore urged for collaborative action to strengthen the supply side of the economy, underscoring the need for deliberate efforts to boost local production and reduce food prices.
Recent inflation trends show headline inflation standing at 33.9% in the third quarter of 2024, 28.0% in the second quarter of 2025, and 28.1% in the third quarter of 2025.
Food inflation for the third quarter of 2024 is recorded at 42.5%, dropping to 33.4% in the second quarter of 2025, and 33.0% in the third quarter of 2025.
Non-food inflation stood at 22.3% in the third quarter of 2024, 19.8% in the second quarter of 2025, and 20.0% in the third quarter of 2025.
