The Bank of Zambia has left its main lending rate unchanged at 8.0%.
Governor Christopher Mvunga said at a news conference Wednesday morning adding that the Policy Monetary Committee had to balance boosting the economy with attracting inflows and supporting the Kwacha.
Mr. Mvunga pointed out that successfully navigating a debt restructuring following a sovereign default was essential for Zambia to return to fiscal fitness.
He said while the rate of price growth is expected to moderate over the next two years, it’s likely to remain above target.
Mr. Mvunga said risks to the inflation outlook remain tilted to the upside adding that the economy will probably contract by 4.2% this year and recover at a slower pace than previously thought due to limited fiscal space.
“Successfully navigating the debt-restructuring process to restore debt sustainability and implementing fiscal and other structural reforms are critical to return to fiscal fitness,” Mr. Mvunga said.
He said the Policy Rate has been maintained at 8.0% to moderate risks to financial stability and support growth, lives and livelihoods.
Mr Mvunga said this decision also allows monetary policy measures taken earlier in the year to take full effect adding that this is despite inflation being projected to persist above the 6-8% target range throughout the forecast horizon
“The Committee noted that financial stability remains fragile despite signs of marginal improvement in economic activity in the third quarter following the partial relaxation of Covid-19 restrictions.”
Copy and paste this new governor is clueless on monetary policies.
He will one day wake and print more kwachas to dish out to PF cadres for campaigns.
PF must go!
BUsiness News-Zambia could have paid a coupon on one of its sovereign dollar bonds last Friday, but chose not to do so due to the need to treat all creditors equally, the copper producer’s central bank, Bank of Zambia, governor said on Wednesday.
However, the finance minister later said that the decision had increased the risk of bondholders taking legal action.
Zambia became Africa’s first sovereign pandemic-era default after it failed to pay $42.5m coupon at the expiry of the grace period on Friday. Holders of Zambian Eurobonds had rejected a government request to defer interest payments until April.
Facing the impact of the coronavirus pandemic and a limping economy, governor Christopher Mvunga said that Zambia is seeking broad debt relief, including within the framework of a debt…
#Bringbackmaggie……
Clueless cannon, no aorta of economics in his brain, just Jameson.
This is like a blind man leading the another blind man at the top who is leading the country’s economy in a ditch .
Wise decision my brother. Let the diasporans hate while you manage our country’s finances diligently.
Give him chance
This Governor is living in an alternative universe. There is so much disconnect between what he is saying and what is going on. How can u attract inflows and support the Kwacha , growth, lives and livelihoods when the Kwacha is depreciating so quickly, now it is trading at K 30,000 to £1.00 ?
This is what happens when cadres/drunkards/ thieves are put in charge.
From the president to bank governor all are crooks. Name me one minister in the PF whose hands are clean.
This goes to KZ as well who is corrupt to the hilt. The role he played in rigging the 2016 elections.
KZ your time will come. Remember these words.
The day you die you will not be taking any wealth with you. Just you your coffin and your soul.
Talk of economic recovery next year is complete wishful thinking.
It is not possible.
Tell the nation how you will be the next due debt instalments.
I suspect this PF government have resolved to stop paying back all debt.
Next, Lungu will call for a national day of prayers so that this debt disappears by divine intervention.
Imagine drunk Chris Mvunga was called to play as striker in the losing Chipolopolo… What will fans react!??? that’s the same Bank of Zambia is experiencing, they have been given such a player to be top there… Here we go, nice pass from Bwalya Ngandu who is familiar at top of BoZ!!!! what a miss by Chris Mvunga !!!!!!!? Bola yawama..
I have stabilized the kwacha to the dollar at K20.30. Where? The sprint to K30 is on
F00lish scouser name one person who takes their material wealth to the grave. That is why we in a civilised society leave wills. What rock do you live under. You are a very thick black scouser. Your personal hate for me or my government will not better your sad life. It is people like you who die from stress related strokes. Just wait for yet another loss next year. ****** kobe
KZ it’s not about hating. But we are all tired about how this country has been run. Cadres have taken over.
What caliber of people are in government posts. Be honest the wealth that you and your president have amassed how legit is it.
Stealing us in your DNA.
At least the country I live in as a tax payer I know the money I have paid towards we receive the services.
From the 27 billion dollars borrowed what has Zambia achieved.
Black peepa amafeeeScouser as you have said you seem happy with the country that adopted you. If you are so happy there why are you so concerned about us here. You live in your country there and us here will live our lives how we see best. You don’t see us poking our business in your country’s affairs. Please do the same with us. We do not give a flying phuck what you or your masters think about how we run our nation. It’s our country after all. I would advise you to concentrate on your self and working for your imperial masters otherwise you will just die of stress trying to change us like your masters have changed you. They have programmed you how they want you to be as an inferior self hating bigot. Fuseke!!!
This lab tech is always insulting. Can some body sit the chap down
In a free and fair environment PF can’t win any election in Zambia. That is why things like public media has shamelessly been kept to themselves to the exclusion of others. All economic indicators MMD left in positive have been turned into negative by PF, and unbelievably and beyond imagination, they want to come back nexf year. The question is, to come and do what?
Total failure. Kwacha going to K22 to a dollar. Economic woes started a long time, even before covid. Vacate on your own to avoid total embarrassment next year
No contest here. Visible failure. Are they still standing next year? Zwaa
Experts on whatever is happening in the Zambian economy are outsiders thus whatever they would like to share will be treated/countered as fake by those “sitting” in government. The few “experts” PF has engaged please their master with economic and monetary policy jargon which the street wise common citizen rubbishes for its failure to explain why three complete meals a day are no longer affordable and a bunch of rape is getting smaller and smaller for the asking priced! It’s like the Zambian economy will only start picking up when those assigned to positions of reshaping the economy get a supervisor that would not be lied to because she or he understands that which is to be discussed.
A lot of waffle in that statement. Clearly no substance in what practical fiscal measures will deal with the debt or promote growth. This kind of talk and no progress is now the norm.
The least educated bank of Zambia governor, I doubt this chap has a clue about what he is talking about! Ni mbeba ya kuChipata!