Bank of Zambia Raises Monetary Policy Rate to 12.5 Percent: A Move Towards Economic Stability

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In a bid to steer inflation towards the target band and anchor inflation expectations, the Bank of Zambia (BOZ) has announced a significant increase in the Monetary Policy Rate, raising it by 150 basis points to 12.5 percent. This decision, outlined by Governor Dr. Denny Kalyalya, reflects the bank's commitment to maintaining stability in the financial sector while fostering robust growth over the medium- to long-term.

Dr. Kalyalya emphasized the importance of fiscal consolidation efforts, progress on external debt restructuring, and improved prospects for increased investments in key sectors of the economy. These factors, he noted, are crucial for achieving and sustaining macroeconomic stability.

The Monetary Policy Committee, encouraged by these developments, will continue to monitor inflation outcomes, forecasts, and identified risks, including those related to financial stability. Dr. Kalyalya affirmed the bank's readiness to take appropriate action should inflation persist above the 6-8 percent target band.

Read the full statement below........

This decision reflects the BOZ's proactive approach to addressing economic challenges and maintaining a conducive environment for sustainable growth. As Zambia navigates its economic landscape, the bank's measures aim to promote stability, enhance investor confidence, and pave the way for long-term prosperity.

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