Malawi central bank raised interest rates by the most significant margin in Africa this year, forecasting high inflation due to adverse weather conditions. The MPC increased the rate by 400 bps to 22% and raised the liquidity reserve requirement ratio on local deposits by 200 bps to 5.75%. Annual inflation, which reached 27% in March, is forecast to average 24.5% this year, up from an earlier estimate of 18.2%. The bank also anticipates slower economic growth in 2023 due to a tropical cyclone, drought, fertilizer shortages, prolonged electricity power cuts, and foreign currency shortages.