JOHANNESBURG (Reuters): Malawi’s central bank raised its benchmark interest rate by 200 basis points to 26 per cent, it said on Monday, citing a high inflation environment.

“The MPC (Monetary Policy Committee) observed that inflationary pressures have intensified, such that inflation is projected to persist before it starts to decline,” the Reserve Bank of Malawi said in a statement.

“The decision is, therefore, intended to counter inflationary pressures and restore price stability.”

Inflation in the southern African country reached 34.5 per cent in December.