The Bank of Zambia’s Monetary Policy Committee MPC has decided to adjust the Monetary Policy Rate upwards by 50 basis points to 8.50%.
The increase means that the general cost of borrowing has increased by 0.5 %.
Bank of Zambia Governor Christopher Mvunga says this has been necessitated by the escalation of inflationary pressure, which are pushing inflation further away from the upper bound of the 6 – 8 % target range.
Speaking during a media briefing in Lusaka today, Mr. Mvunga Said that the decision to raise the policy rate balances the need to contain rising inflation and economic growth.
Mr. Mvunga said that the Central Bank is confident that there will be sufficient liquidity on the market even with the 50% basis increment.
And Mr. Mvunga said that government is still in talks with the International Monetary Fund IMF for a bailout package adding that the nation will be informed when the talks are concluded.