Bashir Al Bashir
Reserve Bank of Malawi has raised Policy Rate to 24%. Lending Policy Rate is interest rate Commercial Banks get charged when they borrow money from the Reserve Bank. It also sets as a minimum interest rate onto which all money lending institutions base their interest on.
In this case, it is most likely commercial banks to adjust their interest rates to 30% thereabout. Just steps away from Katapira Guys.
The rise of interest rates also leads to the rise of production cost as most companies transact with aid from commercial loans. This will lead to rise of production costs of goods and services. The rise of production costs shall lead to another rise in prices of end products – goods and services. The rise of goods and services shall lead to a rise of inflation. The rise of inflation shall weaken on currency (Kwacha). The weakening of Kwacha shall lead to depreciation and depreciation shall lead to Chakwera seeing his village soonest.
Anyway, that is what is called managing the economy the MCP way, unfortunately, I am not MCP Economist. And they will call me a hater yet the their haters are the ones misleading them at the Reverse Bank and Ministry of Finance.
