Governor Christopher Mvunga, Debt Restructure,Zam Economic situation, Stability, Boz Monetary Policy - Video

The Policy Rate has been maintained at 8.5%. This decision was arrived at by the Monetary Policy Committee at its Meeting held on August 30 - 31, 2021.Inflation is projected to decelerate faster and edge closer to the target range than earlier envisaged in the May 2021 Meeting, mostly on account of the favourable outlook for the exchange rate and improved prospects for fiscal consolidation.
In arriving at this decision, the Committee remained mindful of the subdued economic activity and existing vulnerabilities in the financial system.
Implementation of fiscal adjustment measures premised on fiscal discipline, the dismantling of domestic arrears, enhancement of revenue collections, achieving a sustainable budget balance, securing an IMF Programme, and external debt restructuring remain critical to restoring macroeconomic stability.
Highlights: Recovery in global growth gains momentum; Domestic economic activity remained weak in the second quarter, but expected to strengthen in the medium-term; Inflation maintains an upward trend, but recent developments in the exchange rate point to near-term deflationary pressures; Overnight interbank rate maintained within the Corridor; Demand for Government securities strengthens; Interest rates decline; Credit to the private sector picks up and money supply expands further; Strong fiscal adjustment required; Current account surplus narrows; Kwacha depreciation slows down further.
The Bank remains committed to adjusting the Policy Rate upwards should the disinflationary process be slower than expected. Decisions on the Policy Rate will continue to be guided by inflation forecasts, outcomes, and identified risks, including those associated with financial stability and the Covid-19 pandemic. The next MPC Meeting is scheduled for November 15-16, 2021.
Full Statement: https://www.boz.zm/mpc_statement_september_2021.pdf

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