The Bank of Zambia (BoZ) has maintained the Monetary Policy Rate at 13.5%.
BoZ Governor, Denny Kalyalya, says the decision emanated from the the impact of the drought, upward adjustments in the statutory reserve ratio, recent reforms in the foreign exchange market and the past successive increases in the policy rate.
Speaking during a press briefing in Lusaka today, Dr. Kalyalya said that the Committee also decided to maintain the policy rate despite inflation moving away from the targeted 6-8 percent target band.
“In taking the decision to maintain the Policy Rate as opposed to raising it, the Committee also took into account the impact on the stability of the financial system and growth in the wake of the drought,” said Dr. Kalyalya.
He also said that in July, annual inflation increased to 15.4% from 15.2% in June.
Dr. Kalyalya said that the persistent depreciation of the Kwacha against major currencies and rising prices of food and fuel, drove inflation in the second quarter.
Angel Kasabo
