The Reserve Bank of Malawi has maintained its policy interest rate at 24 percent following the Monetary Policy Committee meeting held on August 5 and 6, 2026, according to TWRNews. The central bank noted that the current monetary stance is necessary to support the ongoing decline in inflation and safeguard macroeconomic stability. The Reserve Bank projects inflation to average 22 percent in 2026. In a related banking development, the National Bank of Malawi announced on its official website that it has revised its reference rate to 20.80 percent, effective August 5, 2026, up from 20.50 percent in July.
In a series of significant financial sector reforms, Malawi's Parliament has passed the Payment Systems Amendment Bill, paving the way for the complete elimination of cheques in the national banking system, according to Nyasa Times. Finance Minister Joseph Mwanamvekha confirmed that the legislation follows the recently passed Bills of Exchange Amendment Bill of 2026, Nyasa Times reports. The minister stated that the new laws are designed to align Malawi with global trends favouring faster and more secure digital payment methods, though Nyasa Times notes that a specific timeline for the final phase-out of cheques has not yet been announced.
Update: Agriculture Minister Roza Fatchi Mbilizi has accused trading cartels of orchestrating a smear campaign to derail the government's fertiliser procurement reforms, Nyasa Times reports. Following earlier public scrutiny over the procurement process, Mbilizi is advocating for the Smallholder Farmers Fertiliser Revolving Fund of Malawi to bypass middlemen and purchase directly from manufacturers, according to Nyasa Times. Her team asserts that agents who previously profited from government contracts are actively attempting to block the new direct purchasing initiative, the publication reports.
In other business news, the National Bank of Malawi has launched a learning tour to Botswana for local business journalists, GazetteOnline reports. The bank stated that the initiative aims to support the growth of quality financial and economic reporting in the country by equipping journalists with better skills to cover national economic matters, according to GazetteOnline.