By Chimwemwe Mangazi:
RBM Governor, Dalitso Kabambe, said there was no need to press the panic button on inflation, maintaining its forecast of an average single digit by the end of this year.
Kabambe said this recently in Lilongwe, stressing that, with the prospective maize output, the country was poised to record the lowest level of headline inflation since 1990 very soon.
He added that this would translate into the policy rate falling to 11 percent.
“I wish to assure you that the Monetary and Fiscal Authorities will work tirelessly to ensure sustained improvements in the macro economy. Already, as we all agree, all key macroeconomic fundamentals are favourable.Advertisement
“Our medium term inflation objective of 5.0 percent is likely to be met much earlier than the projected 1st quarter of 2021, meaning that the country will have a record 11.0 percent policy rate very soon.”
He added that the economy was also rebounding this year from a growth of 4.1 percent in 2018 to 5.0 percent in 2019, which is much higher than 3.5 percent global growth and 3.7 percent for sub- Saharan Africa.
President of the Economics Association of Malawi President, Chikumbutso Kalilombe, said the target could be attainable within the next 20 months.
“From the trends and expectations cited, this is indeed possible, our hope is that such should now spur more economic activity and growth as that’s what the country needs the most,” Kalilombe said.