The Bank of Zambia (BoZ) has maintained the Monetary Policy Rate at 14.5%, citing a recent decline in inflation and continued financial system stability.
BoZ Governor, Denny Kalyalya, announced the decision during a press briefing in Lusaka today, stating that the Monetary Policy Committee chose to hold the rate steady, following a drop in annual inflation to 16.5% in April, from 16.8% in February.
Dr. Kalyalya explained that the decision was also influenced by a moderation in non-food inflation, particularly due to reduced airfares and lower prices for motor vehicles and detergents.
“The forecast over the next eight quarters shows that inflation will decline faster towards the 6–8% target band than projected in February,” said Dr. Kalyalya.
He added that inflation is now expected to average 13.8% in 2025, compared to an earlier projection of 14.6%.
Dr. Kalyalya said that in 2026, inflation is projected to drop to 8.8% and further fall to 7.5% in the first quarter of 2027.
He attributed the improved inflation outlook to expected declines in market prices for maize grain and crude oil.
Angel Kasabo
