On February 15-16 2021, the Monetary Policy Committee (MPG) of the Bank of Zambia (BoZ) decided to adjust the Monetary Policy Rate upwards by 50 basis points to 8.50% from 8%.
In its statement, BoZ explains that this has been necessitated by the escalation in inflationary pressures, which are pushing inflation further away from the upper bound of the 6-8% target range, recorded at 21.5% in January 2021.
In addition, the implementation of a strong fiscal policy adjustment, whose key parameters are clearly outlined in the Government ‘s Economic Recovery Programme, is critical in restoring macroeconomic stability.
BoZ expects a recovery of the Zambian economy in 2021, with nearly all the monitored indicators in its Survey of Business Opinions and Expectations having improved in Q3 2020.
