The Bank of Zambia -BoZ- has increased the Monetary Policy Rate by 100 basis points to 11 percent.
BOZ Governor Denny Kalyalya also says the Central Bank has had to increase the statutory reserve ratio twice this month, first by 300-points to 14.5 percent and later by 250-basis points to 17-percent.
He has attributed the decision to the current and projected inflation moving further away from the 6 to 8 percent target band.
Dr. Kalyalya says if the situation is left unchecked, it could make it harder for the country to achieve macro-economic stability.
Speaking during the announcement of the Monetary Policy Committee in Lusaka on Wednesday, Dr. Kalyalya said the inflationary pressures are expected to intensify going forward.
Source: ZNBC
