During a press briefing last week, the Reserve Bank of Malawi Governor, Dalitso Kabambe, revealed that the central bank has adopted a symmetric band of 2.0 percentage points around the point target of its inflation projection.

The above involves aiming at maintaining the rate within a range of plus or minus 2, which is in line with inflation targets to global trends. Also according to Kabambe, the development will help to ease pressure on attaining a 5% inflation goal by the first quarter of 2021.

At the same time, Kabambe outlined that the new projection system is not means to divert from the 5% target. “The target remains 5 percent but in a range where you have plus or minus 2 percentage points so that if its 5.1 or 4.8% you have still met the target, it’s a change not just for us but the rest of the world,” Kabambe said.