Bank of Zambia Governor Dr. Danny Kalyalya has announced that the Monetary Policy Committee (MPC) MPC decided to maintain the Monetary Policy Rate at 13.5 percent.
Addressing the media this morning, Dr. Kalyalya said the committee considered 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 recent reforms in the foreign exchange market.
The Bank of Zambia Governor said the Committee also considered the impact on the stability of the financial system and growth, particularly in 2024, in the wake of the drought.
He noted that the continued implementation of fiscal consolidation measures, including completion of the external debt restructuring, and structural reforms remains critical to lowering inflation, maintaining financial stability, and creating an environment that promotes growth and resilience of the economy against shocks.
And the Central Bank Governor stated that while actual and projected inflation remain elevated relative to the 6-8 percent target band, the Committee judged that the current monetary policy stance is appropriate.
Dr. Kalyalya however noted that there is need for concerted effort and strengthened collaboration among all stakeholders to effectively address current and emerging shocks to safeguard macroeconomic stability.
