MONETARY POLICY RATE INCREASED

The Bank of Zambia has raised the Monetary Policy Rate by 150 basis points to 12.5 percent from the previous 11 percent.

Speaking during the Monetary Policy Committee briefing today, Bank of Zambia Governor Denny Kalyalya says the decision is meant to steer inflation toward the target band and anchor inflation expectations.

Dr. Kalyalya explains that in raising the monetary policy rate, the committee took into account the stability of the financial sector and the importance of robust growth over the medium to long term.

Meanwhile, Dr. Kalyalya says economic activity increased in the third quarter of 2023 owing to the seasonal demand which boosted sales and output in some sector.

Further, the Central Bank Governor is optimistic that growth prospects are more optimistic over the medium term.

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