The Reserve Bank of Malawi (RBM) is signaling that monetary policy alone is insufficient to bring the country's persistent inflation under control.
Deputy Governor Kisu Simwaka warned that defeating high inflation requires addressing deeper structural weaknesses in the economy, rather than relying solely on interest rate adjustments.
The deputy governor emphasized that without tackling underlying structural issues, price stability remains elusive despite ongoing monetary efforts.
Simwaka outlined a path toward single-digit inflation that extends beyond traditional central bank tools.
The deputy governor emphasized that without tackling underlying structural issues, price stability remains elusive despite ongoing monetary efforts.
This perspective suggests a coordinated approach involving fiscal and structural reforms may be necessary to achieve the RBM's inflation targets.
The comments come as consumer groups in Malawi continue to pressure regulators over rising costs.