The Bank of Zambia has maintained its monetary policy rate unchanged at 15.5 percent.
Governor Denny Kalyalya also revealed that the economy grew at only 3.6 percent in 2015 against a target of 7 percent.
Dr Kalyalya said the country’s gross domestic product is expected to slightly increase to 3.7 percent this year.
He said during a quarterly news briefing that growth of around 3.6 percent is way too low.
Dr Kalyalya said one of the reasons why the Central Bank has left the policy rate unchanged is to address the volatility in the exchange rate.
He said the Bank of Zambia expected the economy to recover to around 6.5 percent in the medium term, while inflation would ease to between 10 percent and 15 percent by the end of this year.
Below is Dr Kalyalya’ s statement in full.