Q FM Africa's Modern Radio
BoZ Governor Denny Kalyalya
The Bank of Zambia (BoZ) Monetary Policy Committee (MPC) has reduced the benchmark lending rate by 150 basis points from 15. 5 percent to 14.0 percent.
BoZ Governor Denny Kalyalya says the Committee has also shed off 400 basis points on overnight lending rates from 1000 basis points to 600 basis points above the policy rate.
Dr. Kalyalya has told a media briefing in Lusaka today that the Committee has further reduced the Statutory Reserve Ratio from 18 percent to 15. 5 percent.
He states that in making these decisions, the MPC was guided by the falling inflation rate to single digit whose expectations it has evaluated are fairly anchored on macroeconomic stability.
Dr. Kalyalya says the committee also took into consideration the return of investor confidence in the economy and the stability restored in the exchange rate of the Kwacha against the US dollar.
He says this is in addition to the possibility of the Country recording a good agricultural output this year.
And Dr. Kalyalya says the Central bank projects that Zambia’s economy will grow by 3.9 percent in 2017 and 4.6 percent in 2018.
He says the Central bank also expects inflation to remain in single digit levels in 2017.