BOZ maintains October Policy rate at 9.75%

The Bank of Zambia’s Monetary Policy Committee has maintained the Policy Rate at 9.75% for October 2013.

The Committee in arriving at the decision to maintain the policy rate noted that inflationary pressures are anticipated to emanate from higher liquidity levels in the banking system associated with the recently implemented public sector wages.

The Committee at its September meeting, further noted that 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

This is contained in a statement issued to QFM News by Bank of Zambia Head of Public Relations Kanguya Mayondi.