Malawi Inflation to Go Up; RBM Governor Mafuta Mwale Discloses

Reserve Bank of Malawi governor Dr. MacDonald Mafuta Mwale says there is potential that inflation, which is at 29.2 percent, might go upwards if not careful.

In his presentation on the status of Malawi’s economy at the Public Affairs Committee 6th All-Inclusive Stakeholders Conference, Mwale has, however, said the recent drop in inflation remains a good sign though it can be temporary.

He said: “We can easily go back to the high levels.” The Central Bank governor is set to unpack the reasons why inflation will likely go upwards in his ongoing presentation.

Mafuta Mwale says there are some loans that government acquired in the 1970s and are still being paid up to date.

Mwale has said this in his presentation at the Public Affairs Committee 6th All-Inclusive Stakeholders Conference currently underway at Mount Soche in Blantyre.

He said: “There are some loans that are old as far back as 1970. The problem is that the system—the government does not default. If the government can default, the repercussions are huge.

“Debt is crippling whatever we do in terms of service delivery.”