4 December 2012

Zambia: Bank of Zambia Sets December Policy Rate At 9.25 Percent

THE Bank of Zambia (BoZ) has maintained the policy rate for the month of December at 9.25 per cent.

BoZ head of public relations Kanguya Mayondi said the monetary policy committee made a decision at its November 2012 meeting to maintain the Policy Rate at 9.25 per cent for this month.

The committee noted that inflation projections for end December 2012 remain broadly in line with the target of 7.0 per cent.

A projection was also made that inflationary pressures were expected to be moderated by relatively stable prices of some vegetables, reflecting an improvement in seasonal supply.

In addition, the price of maize grain and maize products is expected to remain stable as the Food Reserve Agency (FRA) supplies maize to the millers this month.

However, the committee noted that there could be upward risks to inflation during December 2012 arising from the global grain deficit that could induce higher domestic and imported grain prices.

The committee weighed risks and was of the opinion that the moderating factors will outweigh the upside risks for inflation.

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