New Currency Notes Trigger Mixed Reactions amongst Stakeholders
Written by Mafken FM Newsroom on 13 February 2025
By Anthony Chomba
The Bank of Zambia (BoZ) Monetary Policy Committee has increased the Monetary Policy Rate by 50 basis points to 14.5 percent.
BOZ governor Danny Kalyalya said the move aims to steer inflation back to the 6 to 8 percent target band and anchor inflation expectations, which have remained elevated.
Addressing a media briefing in Lusaka, Dr. Kalyalya explained that in the fourth quarter of 2024, average inflation rose to 16.3 percent from 15.5 percent in the third quarter.
He further stated that the reduced supply of vegetables and fish, as well as the depreciation of the exchange rate, have contributed to higher inflation.
Dr. Kalyalya said over the next eight quarters, inflation is projected to remain outside the 6 to 8 percent target band.
He pointed out that the relatively higher inflation profile for 2025 is largely influenced by the recent increase in inflation and the persistent depreciation of the exchange rate.
