Zambia's Central Bank Holds Rate at 9.0% for the First Time in Almost Two Years
The Central Bank of Zambia has decided to maintain the key interest rate at 9.0%, marking the first such action in nearly two years. This decision was made during a monetary policy committee meeting held on Thursday. The regulator noted that the country's economy is showing signs of resilience, despite some ongoing challenges.
Previously, for an extended period, the Central Bank of Zambia had regularly raised rates in an attempt to combat inflation, which had reached significant levels. However, in recent months, inflationary pressure has somewhat eased, allowing officials to reconsider their monetary policy. The bank confirmed that the current rate will remain in effect for a certain period, depending on the economic situation and inflation expectations.
The bank's head emphasized that the decision to hold the rate was based on various factors, including weak economic recovery and external risks, such as fluctuations in commodity prices. In this context, the regulator will closely monitor the global economic situation and its effects on Zambia's economy.
Thus, the decision to maintain the interest rate is an important step towards ensuring economic stability and supporting growth in the country. The central bank's management will continue to analyze the situation and is prepared for further action based on economic and inflationary trends.