Bank of Zambia Launches Monetary Policy Report

The Bank of Zambia has launched its first publication of the Monetary Policy Report (MPR) that is expected to enhance transparency, accountability, communication and interactions on monetary policy matters.

The MPR is a product of the newly constituted Monetary Policy Committee (MPC) which was established by statute, thus making it the first time in the history of the Bank to have a statutory MPC.

Bank of Zambia Governor Denny Kalyalya disclosed at the launch of the report in Lusaka, that previously the bank had been publishing the MPR only for internal use but that the new BOZ Act of 2022 requires that the bank publishes it for the public to promote accountability and transparency.

Dr. Kalyalya emphasized the importance of the report which reviews macroeconomic development and gives prospects for inflation over the months ahead.

Dr. Kalyalya explained that the monetary policy committee raised the policy rate by 150 basis points to 12.5 percent to steer inflation towards the 6-8 percent target band and thus help anchor inflation expectations.
He said the decision to raise the policy rate was arrived at after judging from the inflationary pressure which had persisted and inflation was projected to remain above the target band during the forecast period.
Dr. Kalyalya also indicated that inflation is projected to average 12.5 percent in 2024 and then slowdown to 9.9 percent in 2025.

Various stakeholders who attended the launch of the Report called on the people of Zambia to have a change of mindset in order to achieve development.
The Private Sector Development Association (PSDA) Chairperson Yusuf Dodia called on the bank to voice their views frequently when issues of macroeconomic related topics are discussed in the country.
Mr. Dodia said the BOZ is not usually heard when people are debating on issues affecting the economy of the country.