The Economic Association of Zambia (EAZ) has expressed support for the Bank of Zambia’s (BoZ) decision to maintain the Monetary Policy Rate (MPR) at 14.5%, describing it as a cautious yet confident stance in managing monetary policy.
EAZ President, Oswald Mungule, said the Central Bank’s move reflects a balanced approach aimed at sustaining recent gains in inflation control while addressing prevailing macroeconomic risks.
He noted that the decision not to further adjust the policy rate underscores the Bank’s confidence that current monetary conditions remain sufficient to support the ongoing disinflation trend.
“By maintaining the rate, the Bank provides much-needed predictability for economic stakeholders, supporting business planning and reducing uncertainty in the credit market,” said Dr. Mungule.
He further explained that holding the rate steady allows the economy to absorb and respond to the cumulative effects of earlier policy tightening, without placing additional strain on private sector activity and investment.
By Margaret Mwanza
