The Bank of Zambia-BOZ- through the Monetary Policy Committee has raised the monetary policy rate by 50 basis points to 14.0 percent, from 13.5 percent in the third quarter of 2024.
Announcing the development during the fourth Monetary Policy Media Briefing for the year 2024, BOZ Governor Denny Kalyalya cited the increase in inflation both actual and projected as one of the reasons for the decision.
Dr. Kalyalya explains that the drought was the major contributor to the rise in inflation which currently stands at 6-8 percent, saying that it affected many aspects of life.
He expressed concern that inflation rate has continued to rise with food and non-food inflation rising adding that the increased demand of fuels due to electricity load management as well as the depreciation of the kwacha are also key drivers of inflation.
Dr. Kalyalya however states that the central bank is working tirelessly to address the situation by putting in place a number of measures.
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