Zambia reduces benchmark interest rate to 14 percent

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Zambia’s central bank on Wednesday reduced its benchmark lending rate to 14 percent following a significant reduction in annual inflation rate.

banks Bank of Zambia (BoZ) Governor Denny Kalyalya told reporters during a press briefing that the Monetary Policy Committee decided to reduce the rate by 150 basis points to 14 percent from 15.5 percent due to the single annual inflation rate the country has recorded in recent months.

He said the reduction was due to low and sluggish economic growth and the prevailing high interest rates that are constraining access to credit by the productive sectors of the economy.

“Changes in the policy rate will be guided by inflation outcomes and forecasts as well as progress in fiscal consolidation,” he said.

Year-on-year inflation for January reduced to 7.0 percent from 7.5 percent recorded in December last year. Enditem

Source: Xinhua/NewsGhana.com.gh

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