The Bank of Zambia BoZ has increased the Policy Monetary Rate to 13.5% from 12.5% the previous quarter, due to continued rise in the country’s inflation rate.
This is the 6th consecutive time that the Monetary Policy Committee has increased the Monetary Policy Rate.
Speaking at a Press Briefing in Lusaka today, BoZ Governor Denny Kalyalya said the decision to increase further, the Policy Rate, follows the persistent hike in the country’s inflation rate, away from the 6 to 8% projections.
Dr. Kalyalya said the decision to raise the Policy Rate is meant to contain the persistent increase in the inflationary pressure.
He said the inflation rate at 13.8%, will undermine microeconomic stability if left unchecked.
Dr. Kalyalya however said the inflation rate in projected to continue rising for the next two years to around 13.7% margin.
He said this follows the depreciation of the Kwacha and increase in food prices, particularly the Maize grain.
By Eva Hatontola
