By Kuleka Runaidah | Melo News | Thursday, August 15, 2024 | Lusaka
Central Bank Governor Denny Kalyalya emphasized the necessity for unified efforts and enhanced collaboration among all relevant parties to effectively tackle both existing and emerging economic challenges, thereby ensuring the preservation of macroeconomic stability within the nation.
During a media briefing in Lusaka, he pointed out that the cumulative effects of recent policy rate hikes, adjustments to the statutory reserve ratio, and reforms in the foreign exchange market have significantly influenced the current economic landscape.
Kalyalya indicated that the committee has determined the existing monetary policy framework to be suitable, particularly in light of the adverse effects of drought and other contributing factors.
He reported that inflationary pressures remain a concern, with the inflation rate climbing to an average of 14.6 percent in the second quarter of 2024, up from 13.5 percent in the preceding quarter.
Furthermore, he explained that the decision to hold the policy rate steady, rather than implement an increase, was made with the intention of bolstering financial system stability and promoting economic growth in 2024, especially in the context of the challenges presented by drought conditions.
Kalyalya underscored the critical need for ongoing fiscal consolidation efforts, which include the successful completion of external debt restructuring and the implementation of structural reforms, as essential measures for reducing inflation, ensuring financial stability, and enhancing the economy’s resilience to future shocks.
