By Derrick Silimina
The Bank of Zambia has maintained the Monetary Policy Rate (MPR) at 13.5 percent following the continued impact on the stability of the financial systems and growth particularly in the wake of the drought.
In a statement, BoZ Governor Denny Kalyalya disclosed that at its August 12-13, 2024 meeting, the Monetary Policy Committee decided that while actual and projected inflation remain elevated relative to the 6-8 percent target band, the Committee judged that the current MPC stance is appropriate.
“In taking the decision to maintain the Policy Rate as opposed to raising it, the Committee also took into account the impact of the drought as well as that of the past successive increases in the Policy Rate, upward adjustments in the statutory reserve ratio and the recent reforms in the foreign exchange market,” Dr. Kalyalya said.
The Central Bank Governor further stressed that with persisting inflationary pressures rising to an average of 14.6% in the second quarter of 2024 from 13.5% recorded in the first quarter.
He noted that in July, inflation increased to 15.4% from 15.2% recorded in June, 2024 adding that the persistent depreciation of the Kwacha against major currencies as well as rising of food (maize grain, maize products and vegetables) and energy, particularly fuel, due to constrained supply continues to drive inflation in the second quarter.
“In this regard, to safeguard macroeconomic stability, the need for concerted efforts and strengthened collaborations among stakeholders to effectively address current and emerging shocks can hardly be overemphasized.”
BoZ maintain lending rate at 13.5%
By Derrick Silimina
The Bank of Zambia has maintained the Monetary Policy Rate (MPR) at 13.5 percent following the continued impact on the stability of the financial systems and growth particularly in the wake of the drought.
In a statement, BoZ Governor Denny Kalyalya disclosed that at its August 12-13, 2024 meeting, the Monetary Policy Committee decided that while actual and projected inflation remain elevated relative to the 6-8 percent target band, the Committee judged that the current MPC stance is appropriate.
“In taking the decision to maintain the Policy Rate as opposed to raising it, the Committee also took into account the impact of the drought as well as that of the past successive increases in the Policy Rate, upward adjustments in the statutory reserve ratio and the recent reforms in the foreign exchange market,” Dr. Kalyalya said.
The Central Bank Governor further stressed that with persisting inflationary pressures rising to an average of 14.6% in the second quarter of 2024 from 13.5% recorded in the first quarter.
He noted that in July, inflation increased to 15.4% from 15.2% recorded in June, 2024 adding that the persistent depreciation of the Kwacha against major currencies as well as rising of food (maize grain, maize products and vegetables) and energy, particularly fuel, due to constrained supply continues to drive inflation in the second quarter.
“In this regard, to safeguard macroeconomic stability, the need for concerted efforts and strengthened collaborations among stakeholders to effectively address current and emerging shocks can hardly be overemphasized.”
