The Bank of Zambia (BOZ) has maintained the monetary policy rate at 9.0 percent.
The Bank of Zambia Governor, Danny Kalyalya said that the Monetary Policy Committee (MPC) of BOZ has based their assessment mainly on the prevailing macroeconomic conditions and outlook which are currently taking shape, and has to this end maintain status quo with regard to the policy rate sitting at 9.0% for the third consecutive time.
“The Policy rate has however maintained at 9.0%, strongly generating from the bearing effect being witnessed and obtained from the November Monetary Policy Rate, as it remains such an important aspect to maintaining accommodative model of credit flows to business and investment as they are now picking up with some economic activities, and as it quite significant to see that this is coming out so strongly as a necessary tool to be used in reviving the speed observed in the domestic economy,” Dr Kalyalaya explained.
He said that the Monetary Policy Rate’s stance is seen to have done a bit of heavy lifting in a way, as it has sustained some spots of steady growth patterns on a durable basis within the short-term.
Dr Kalyalaya further underscored the rationale for maintaining status quo on the policy rate is to support the recovery process in building up of aggregate demand, which is now hinging on the gradual pick up with the private investment.
He stated that the Bank of Zambia monetary policy rate Committee has regarded the prominence of headwinds emanating from global developments, as the main originator to risk affecting the domestic outlook as done by stakeholders such as the International monetary fund (IMF) and World Bank .
Dr Kalyalaya further stated that this has also now objectively been bothered by both upside and downside risks of Russian-Ukraine effects as well as with some lingering conditionalities emanating from the COVID-19 impacts among many other things such as oil pricing dynamics among others.