On Independence Day eve, the Reserve Band of Malawi (RBM) announced the cut for the bank interes rate by four percentage points from 22 percent to 18 percent. The development means Malawians will now be paying less on loans.

And Head of Economics Department at Malawi Catholic University Gilbert Kachamba has said the cut in the interest rate will increase business and investment in this country.

Kachamba attributed the positive trend to Government’s fiscal discipline.

The development comes against a background of International Monetary Fund (IMF) giving Malawi a positive rating at the end of its assessment of the Extended Credit Facility (ECF) programme.

Angered by revelations of wanton plunder of public funds at Capital Hill, widely known as cashgate in 2013, Malawi’s key donors - who contributed about 40 percent to the budget - withdrew their direct budgetary support with $150 million, leaving behind a huge fiscal gap.