Joyce Banda’s Errand Boy RBM Governor Chuka Caught Pants Down

Joyce Bandas ereand boy in cash gate scandal and Reserve Bank of Malawi governor Charles Chuka has been caught panta down, lying that politicians are to blame for his own failures.

Chuka is on record saying all the economic problems we are facing as a nation are due to politicians but economic experts have trashed his claim and labelled it as daylight misinformation.

“Now let us look at the case of interest rates. In Malawi, the government does not set interest rates; this is the mandate of RBM. It is common knowledge that the bank rate is one of the most significant input in the in determination of interest rates in Malawi. This is done through the Monetary Policy Committee (MPC) of the bank.

The MPC is comprised of eight members. This committee is chaired by Mr Chuka himself and the Secretary is the bank’s Director of Research and Statistics. All deputy governors of the bank are members of this committee. The only government representative in this committee is the Secretary to the Treasury.

These members meet to deliberate on the global, regional and national economic development periodically and make decision on what monetary instruments apply to address the issues identified. The committee has the mandate to adjust the bank rate, and every time the MPC announces an adjustment of the bank rate, nearly all commercial banks also announce an adjustment usually of the same margin. There is no politician in this committee.

Mr Chuka tell us how do the politicians determine the interest rates? If indeed the politicians determine the interest rates, why do we have this committee?”

  • Fanwell Kenala Bokosi, PhD

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