BoZ increases MPR by 25 basis points to 9.5%
Daily Star Reporter
5/17/2023 5:12:31 PM
The Bank of Zambia has increased the Monitory Policy Rate (MPR) by 25 basis points to 9.5%.
This follows a meeting held on Monday and Tuesday by the Central Bank’s Monetary Policy Committee.
Bank of Zambia governor Denny Kalyaya said the annual inflation of 9.6% in this year’s first quarter, among other factors necessitated the decision by the committee.
Dr Kalyalya explained that inflation would continue to be above target band over the forecast horizon.
He said other factors considered include the fragile growth of inflation, vulnerabilities and risks in the financial sector and potential benefits from the successful conclusion of external debt restructuring negotiations through the exchange rate channel.
Dr Kalyalya complained that inflation declined further in the period in question, albeit maginal.
He however stated that it remained elevated and is projected to remain above the 6-8% target band over the forecast horizon.
This follows a meeting held on Monday and Tuesday by the Central Bank’s Monetary Policy Committee.
Bank of Zambia governor Denny Kalyaya said the annual inflation of 9.6% in this year’s first quarter, among other factors necessitated the decision by the committee.
Dr Kalyalya explained that inflation would continue to be above target band over the forecast horizon.
He said other factors considered include the fragile growth of inflation, vulnerabilities and risks in the financial sector and potential benefits from the successful conclusion of external debt restructuring negotiations through the exchange rate channel.
Dr Kalyalya complained that inflation declined further in the period in question, albeit maginal.
He however stated that it remained elevated and is projected to remain above the 6-8% target band over the forecast horizon.