At its September 2013 meeting, the Monetary Policy Committee decided to maintain the Bank of Zambia Policy Rate at 9.75% for October 2013.
The Committee noted that inflationary pressures are anticipated to emanate from higher liquidity levels in the banking system associated with the recently implemented public sector wages. Further, increased prices of some food items, particularly maize grain and maize products induced by the regional maize deficit may augment inflationary pressures.
However, the Committee observed that the recent appreciation of the Kwacha exchange rate following improved supply of foreign exchange will moderate inflationary pressures going forward.
After weighing the inflationary risks, the Committee resolved to maintain the current relatively tight monetary policy stance following recent upward adjustments in the Policy Rate in June and July. Accordingly, the Bank of Zambia Policy Rate will remain unchanged at 9.75%.
The next meeting of the Monetary Policy Committee to review the Bank of Zambia Policy Rate will be held at the end of October 2013.
