BANK OF ZAMBIA MAINTINS MONETARY POLICY RATE AT 13.5 PERCENT

Daily News Reporter

The Bank of Zambia has maintained the monetary policy rate at 13.5%. This decision took into account the effects of the drought, the successive increases in the policy rate, adjustments in the statutory reserve ratio, and recent reforms in the foreign exchange market.

This was at Bank of Zambia’s Monetary Policy Rate Announcement and Press Briefing made in Lusaka, Inflation rose to 14.6% in the second quarter of 2024, up from 13.5% in the first quarter. The main drivers of this increase were food and fuel prices.

And the depreciation of the Zambian Kwacha slowed to 3.8% in the second quarter, compared to a more significant 10.6% in the first quarter. The improvement was attributed to increased foreign exchange supply, particularly from the mining sector, and progress in the debt restructuring program.

For Zambia's foreign reserves now stand at $3.9 billion, equivalent to 4.3 months of import cover. This was largely driven by a disbursement of $569.9 million from the International Monetary Fund (IMF).

Lastly the economic activity remains weak, with businesses slowing down due to the impact of the drought.