28 July 2012

Zambia: National Bank Maintains Nine Percent Rate

THE Bank of Zambia (BoZ) has maintained the nine per cent Policy Rate for the month of August.

BoZ Governor Michael Gondwe said this during a media briefing held at the Central Bank in Lusaka yesterday.

Dr Gondwe said the monetary policy committee decided to maintain the Policy Rate at nine per cent because the country's inflation rate was still within the projected range.

"The committee anticipates inflation pressures in August to be subdued, largely on account of expected positive impact of stable mealie-meal prices following the improvement in maize supply," he said.

The other attributes include the stability in fuel prices and the pass-through effects of the recent appreciation of the exchange rate.

He said the Committee, however, noted that inflationary pressures may arise from continued increase in prices of meat products and the potential impact of the Eurozone crisis.

The Policy Rate for June and July remained at nine per cent.

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