Malawi keeps key interest rate unchanged, sees inflation falling further

April 30 (Reuters) - Malawi's central bank left its main lending rate unchanged at 24% on Thursday, saying the decision should help inflation fall further and restore economic stability.

* The donor-dependent Southern African nation has been mired in an economic crisis, struggling to control inflation which has been above 20% in annual terms for more than three years.

* But inflation has eased for five consecutive months now and stood at 23.8% year on year in March.

* "Maintaining the Policy Rate is expected to support continued disinflation, anchor inflation expectations, and restore macroeconomic stability," the Reserve Bank of Malawi said in a statement on its website.

* It projected inflation would average 22% in 2026, down from 28.4% last year.

* Economic output is expected to expand 3.8% this year, up from 2.7% in 2025, supported by favourable performance in the agriculture, mining and manufacturing sectors.

* "The Monetary Policy Committee will continue to closely monitor global developments and assess their implications for domestic price stability," the central bank continued.

(Writing by Sfundo Parakozov; Editing by Alexander Winning)