Bank of Zambia maintains 9.75% policy rate

The Bank of Zambia (BoZ) has maintained its policy rate at 9.75 percent for the month of September 2013.

BoZ Head of Public Relations, Kanguya Mayondi, said the Monitory Policy Committee of the Central Bank decided to maintain the policy rate for September at its August 2013 meeting.

Mr Mayondi said the committee noted the continued presence of inflationary pressures largely associated with the anticipated wage increase for the public sector effective September, 2013.

He said this will be in addition to pressures that may arise from the possible increase in the price of some food items due to continued high demand in the region.

Mr Mayondi said the committee, however, observed that inflationary pressures may moderate in the coming month on account of the recent stability in the exchange rate of the Kwacha.

He said the committee further noted the continued weak global economic growth, which he said may lead to lower external demand for export commodities.

He said the committee also noted the slight increase in the price of copper on the back of an improvement in Chinese import demand in recent weeks.

Mr Mayondi said the committee weighed the inflationary risks and has resolved that monetary policy should continue to be relatively tight during the policy-relevant period in order to moderate inflationary pressures.

Mr Mayondi said the next meeting of the Monetary Policy Committee to review the Bank of Zambia Policy Rate will be held at the end of September, 2013.

ZANIS