Update: The Reserve Bank of Malawi has opted to maintain its benchmark policy rate at 24 percent to let previous tightening measures work through the economy. According to Finimize, while inflation eased to 21.1 percent in June, the central bank downgraded its 2026 economic growth forecast from 3.8 percent to 2.8 percent. Policymakers indicated that persistently high borrowing costs are slowing down non-agricultural business activities and consumer spending, prompting the need for clearer evidence of economic stability before considering a rate cut.
A new assessment from the Integrated Food Security Phase Classification, published by the Food Security Portal, indicates that 1.9 million Malawians are experiencing crisis levels of acute food insecurity between April and September 2026. UN News reports that this figure represents a notable improvement from the previous two years due to a better agricultural harvest. However, the data shows that high commodity prices, elevated inflation, and foreign exchange shortages continue to erode household purchasing power, particularly for urban and low-income rural families.
In a separate currency update, a new 5,000-kwacha banknote featuring an updated official signature was confirmed in circulation this week by Banknote News. The note features the signature of MacDonald Mafuta Mwale and is dated January 1, 2026.