Melo Media, Wednesday, 22nd November, 2023
The Monetary Policy Committee of the Bank of Zambia has decided to increase the policy rate by 100 basis points, bringing it to 11 percent.
Governor Denny Kalyalya of the Bank of Zambia has linked the increase to the prevailing and anticipated inflation rates. He emphasizes that these rates are deviating from the projected range of 6-8%, and if not addressed, they will surpass the target levels, posing difficulties in managing the overall macroeconomy.
Dr. Kalyalya revealed during a press conference held in Lusaka today that the Central Bank anticipates a surge in inflationary pressures from the current quarter until the third quarter of 2025. It is projected that there will be a decrease of approximately 9.6% during that period.
Dr. Kalyalya has justified the recent increase in the Statutory Reserve Ratio to 17 percent, stating that the current economic situation is precarious and could worsen if immediate action is not taken.