Malawi cuts key interest rate by 200 basis points to 24% as inflation eases

BLANTYRE, March 5 (Reuters) - Malawi's central bank cut its policy rate by 200 basis points to 24% in the first rate-setting meeting under new governor George Partridge.

"The current inflation outlook allows for a cautious reduction in the policy rate, while maintaining a sufficiently tight monetary policy stance, to continue steering inflation towards the medium-term objective of 5%," the bank said in a statement.

The donor-dependent Southern African nation has struggled to control inflation, which has been above 20% in annual terms for the past three and a half years.

But inflation has eased for three consecutive months and now stands at 24.9% in annual terms.

In a budget speech last week, Malawi's finance minister said the government expects the policy rate to fall to 18% by the end of the 2026/27 fiscal year, which starts in April, and forecast inflation further slowing to 15%. (Reporting by Frank Phiri; Writing by Sfundo Parakozov; Editing by Andrew Cawthorne and Bernadette Baum)