Friday, April 19, 2024

Bank of Zambia maintains the Monetary Policy Rate at 9.75 %


BANK of Zambia Governor Denny Kalyalya
BANK of Zambia Governor Denny Kalyalya

The Bank of Zambia has maintained the Monetary Policy Rate at 9.75 percent for the third quarter of 2018.

The decision to maintain the policy rate is due to inflation which has remained high at between 6% to 8% and the continued low economic growth with heightened downside risks.

Bank of Zambia Governor Denny Kalyalya said other factors considered are low private sector credit growth, sustained high fiscal deficit, rising public debt and external service debt payments.

Dr. Kalyalya was speaking at a quarterly media briefing today.

And Dr. Kalyalya said Zambia’s foreign currency reserves have deteriorated to $1.63 billion as at end September 2018 from $1.83 billion of import cover at the end of June 2018.

Dr. Kalyalya attributed this to debt service payments.

He said to build international reserves, the Bank of Zambia continued to purchase foreign exchange directly from the market and through the mineral royalty tax receipts


  1. This Bank of Zambia is just full of rhetoric.It lucks pragmatism and implementation of it’s policies.Recently,they removed a lot of unjustifiable charges on commercial banks,but the trend has continued happening.People gave them kudos for such a pronouncement.Banks like Standard Chartered, are still charging a fee on withdraws.One wonders if Bank of Zambia has inspectors to monitor the policies it introduces.They need to be proactive and execute the guideline they introduce in banking sector.

  2. Imagine an economy like ours with only US1.63billion in reserves of import cover? This man should be ashamed of himself and the cliché at this institution. Fundanga left a lot of reserves and 7 years down the line they keep dwindling. Even after having borrowed billions of dollars from the Chinese. Where exactly do the Chinese loans go before being used? Are they not supposed to prop up our reserves before being utilized so that BOZ can earn some interest in the short? The SCT was sitting idly in a ZANACO bank, who got the interest? The BOZ will soon lose its credibility if the only thing they announce at these quarterly briefing is to maintain the status quo all the time. They need to stimulate the business environment for the economy to flourish and not this gibberish.

    • That’s the precise concern globally about the Chinese so called investment model. No cash flows to any Investee country. Materials, equipment and chinese labour are sent directly from China to over-valued projects (XXXXX times actual cost of equipment & materials) in investee countries. A lot of the projects are questionable as to purpose and ability generate returns. We then have to send hard currency back to them from our Reserves. No cash benefit but left with No reserves (zero $$). Leaves us struggling to find $$$ to pay for imports of other basic and essential requirements (fuel, energy etc) >> pressure on Kwacha >>> import inflation >> higher cost of goods and services.

  3. With PF Cadres at BOZ like Dr Kalyalya (translation: eat, eat) there will soon be no foreign reserves left for Zambia!

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