BLANTYRE, March 5 (Reuters) - Malawi's central bank cut its key interest rate by 200 basis points on Thursday, citing a gradual decline in inflation in its first monetary policy meeting under new Governor George Partridge.
* The decision takes the policy rate to 24% * It was the first rate adjustment since February 2024, asthe donor-dependent Southern African country has battled to reinin rampant price pressures * "The 200-basis points reduction in the policy rate is acautious and measured adjustment, reflecting the improvinginflation outlook," the central bank said in a statement * Inflation has fallen for three consecutive months,reaching 24.9% year-on-year in January. It has been above 20%since mid-2022 * President Peter Mutharika, who was elected last year, isseeking to revitalise Malawi's fragile economy. He appointedPartridge in January * Malawi wants to agree a new support programme from theInternational Monetary Fund after the previous one failed torestore macroeconomic stability and was terminated * Public debt is estimated at over 90% of gross domesticproduct, posing risks to economic stability(Reporting by Frank Phiri. Writing by Sfundo Parakozov.Editing by Alexander Winning and Mark Potter)
By Frank Phiri
