Bank of Zambia announces monetary policy, increases interest rate to 10.25 percent

THE Bank of Zambia has announced its monetary policy, increasing its benchmark interest rate by 50 basis points to 10.25 percent from 9.75 percent, effective from May 21, 2019.
Bank of Zambia Governor Denny Kalyalya said this during a monetary policy committee briefing today.
“The Monetary Policy Committee (MPC), at its May 20-21, 2019 Meeting, decided to raise the Policy Rate by 50 basis points to 10.25%. Inflation is projected to breach the upper bound of the 6-8% target range over the forecast horizon due to heightened upside risks, some of which have materialised. Raising the Policy Rate is therefore, intended to counter inflationary pressures and support macroeconomic stability.
The Central Bank Governor also reminded commercial banks to discuss with affected customers on how best they can settle their loans either by extending their payment period or increase the service charge.

Post Views:
50

News Source: Mwebantu