Each of us – both the ECB and the Federal Reserve – have a price stability mandate. And if the inflation rate here is much too low for a long period and inflation expectations – if you look at them – are very low, i.e. below, well below 2% that we aim for, then we have to react, as that is our mandate.
This is the major reason why banks should be even more confident to open branches in rural areas. Financial inclusion is one of the current major themes of the Reserve Bank of Malawi hence my happiness and gratitude to the Malawi Savings Bank for opening yet another branch today.