Malawi's central bank slashed its policy rate by 400 basis points to 18.0 percent as the disinflationary momentum has strengthened, with the stabilization of the kwacha's exchange rate boding well for a continued decline in inflation.

The Executive Board of the International Monetary Fund (IMF) today completed the ninth and final review of Malawi’s economic performance under the program supported by an Extended Credit Facility (ECF) arrangement [1]. The Board’s decision enables the immediate disbursement of the equivalent of SDR 19.5 million (about US$ 26.9 million), bringing total disbursements under the arrangement to the equivalent of SDR 138.8 million (about US$ 191.4 million).

Two of Malawi’s smallest banks, New Finance Bank (NFB) and Opportunity Bank, will merge to meet the central bank’s capital requirements, the lenders said on Friday.

Carlsberg Group has signed an agreement regarding the sale of its 59% share of Carlsberg Malawi Limited (CML, previously The Bottling and Brewing Group Limited) to Castel Group.