BoZ raises lending rate to rein in inflation

TRYNESS TEMBO
Lusaka
IN ITS efforts to arrest the depreciating Kwacha and confine the inflation rate within the target band, the Bank of Zambia (BoZ) has raised its benchmark lending rate by 150 basis points to 12.5 percent.
BoZ Governor Denny Kalyalya said the persistent depreciation of the Kwacha against other major convertible currencies and elevated food prices continued to push inflation up in the fourth quarter of 2023.
Dr Kalyalya said inflation rose to an average of 12.9 percent from 11 percent in the third quarter.
“Inflationary pressures continued in January 2024, with annual inflation rising to 13.2 percent from 13.1 percent in December 2023,” he said during a media briefing yesterday.
“At the last Monetary Policy Committee (MPC) meeting in November, inflation was forecast to remain above the six to eight percent target band…https://enews.daily-mail.co.zm/welcome/home