BoZ maintains 9 p.c policy rate for August

The Bank of Zambia (BoZ) has maintained the policy rate at nine percent for the month of August.

BoZ Governor Michael Gondwe disclosed that the Central Bank’s Monetary Policy Committee which sat today decided to maintain the policy rate for the month of August at nine percent as it anticipates inflation pressures this month to be subdued due to numerous factors.

Dr. Gondwe attributed this development to the expected positive impact of stable mealie meal prices following the seasonal improvement in maize supply, continued stability in fuel prices and the pass-through effects of the recent appreciation of the exchange rate.

ZANIS reports that Dr. Gondwe told journalists at a media briefing in Lusaka today that the committee has, however, noted that inflationary pressures may arise from continued increases in the prices of meat products and the potential impact of the protracted Eurozone crisis.

The Central Bank Governor stated that the Committee has weighed the inflation risks and has determined that inflation during the policy relevant period will remain largely consistent with the end year target of seven percent, saying that the committee therefore decided to maintain the policy rate at nine percent.

Dr. Gondwe said the policy rate is key in the pricing process of bank products and to get the consumer know and understand how banking products are priced.

And the BoZ Governor said the Central Bank targets to roll out the new rebased bank currency by December this year.

He said the Bank has already started in earnest the sensitization of the public to get them acquainted with the rebasing process for them to understand that the rebasing process will not change the value of the currency but was merely a process of knocking out three zeros from the current currency. 

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