Malawi central bank raised interest rates by 400 bps to 22%, anticipating sustained high inflation due to adverse weather conditions. The liquidity reserve requirement ratio on local deposits also increased by 200 bps to 5.75%. Annual inflation, which accelerated to 27% in March, is expected to average 24.5% this year, compared to an earlier estimate of 18.2%. The bank now predicts a slower economic growth rate for 2023 due to factors such as a tropical cyclone, drought, limited fertilizer access, prolonged power outages, and FX shortages.