In its April 2019 economic report, Nico Asset Managers has foreseen the policy rate having another downward review, depending on the on inflation remaining subdued, as a loose monetary policy occurs when the money supply is expanded and is easily accessible to citizens to encourage economic growth.

The Investment management and advisory firm has also said that it expects the Kwacha to remain relatively stable against the dollar in the short term, depending on a continued availability of foreign exchange reserves and reduced demand for foreign currency.

The report has also predicted the pace of annual currency depreciation to increase to 9% in 2019, while fiscal consolidation after the elections is expected to lower due to pressure on the currency in 2020. The report reads In 2021-22 a weaker US dollar and higher exports aided by a strengthening in the prices of some of Malawi’s agricultural exports should provide further modest support to the Kwacha.”