Johannesburg - Malawi's central bank cut its benchmark lending rate by 250 basis points to 22.5 percent on Tuesday, saying the outlook for inflation was favourable due to a relatively stable exchange rate for the kwacha currency.

“The Committee noted that fiscal prudence and management of food supply situation will be critical to mitigating inflationary pressures,” the Reserve Bank of Malawi's monetary policy committee said in a statement. - Reuters