By Business Reporter
Pain for Malawians as the country’s commercial banks have raised their lending rates by 10 percent since June this year to 22.7 percent in November, increasing the cost of money for businesses and households.
Data shows that borrowing money has now become very expensive for ordinary Malawians.
If you want a business loan, farm loan, or even a house loan, you will pay much more than you were paying in June.
Money market analysts say that with inflation easing but still elevated, the Reserve Bank of Malawi (RBM) is keeping monetary conditions tight.
This means RBM is deliberately making money expensive to control prices in the shops.
But this tough stance is now reigniting serious concerns about the impact on investment and economic growth.
Small businesses are failing to borrow to expand, young entrepreneurs cannot start, and households are struggling to survive.
Many Malawians are now asking banks to have mercy, because at 22.7 percent, only the rich can borrow.
