Zambia’s Monetary Policy Committee says it has decided to maintain The Bank of Zambia (BOZ) policy rate at 9.75 percent for the month of September.
BOZ said the committee noted the continued presence of inflationary pressures largely associated with the anticipated wage increase for the public sector effective September.
This, it said, will be in addition to pressures that may arise from the possible increase in the price of some food items due to continued high demand in the region.
The committee, however, observed that inflationary pressures may moderate in the coming month on account of the recent stability in the exchange rate of the Kwacha.
The committee noted the continued weak global economic growth, which may lead to lower external demand for export commodities. However, the committee also noted the slight increase in the price of copper on the back of an improvement in Chinese import demand in recent weeks.
It said: “The committee has weighed the inflationary risks and has resolved that monetary policy should continue to be relatively tight during the policy-relevant period in order to moderate inflationary pressures.”