Zambia’s central bank said on Wednesday (July 31) its Monetary Policy Committee has decided to leave the policy rate unchanged at 9.75% for August after raising it by 25bps in each of the previous two months. The MPC said it has weighed the inflationary risks and decided to retain its tight monetary policy stance so that the central bank’s end-year inflation target of 6% can be met. It noted that the main risks to the inflation target stem from continued cost push pressures largely associated with pass-through effects of the depreciation of the kwacha, while further inflationary pressures may arise from demand pull factors in the coming months.
On the other hand, lower food prices due to seasonal improvement in supply and the waning effects of the recent removal of fuel subsidies would exert downward pressure on inflation.
Zambia’s annual inflation rate stood at 7.3% in July, at the same level as in June, after accelerating from 6.5% in April to 7% in May following the removal of subsidies for fuel and corn farmers in May.
The next meeting of the Committee to review the Bank of Zambia Policy Rate will be held at the end of August 2013.
Related Articles
Eni and Shell boost stakes in Nigerian deepwater OML118 as TotalEnergies exits
A restructuring of OML 118, which hosts the Bonga field – Nigeria’s first deepwater oil development – has taken place with subsidiaries of majors Eni (NYSE:E, BIT:ENI) and Shell (LSE/NYSE:SHEL) ... more
Leo Lithium receives first TPSF payment from Goulamina (Mali) shipments
Leo Lithium Ltd (ASX:LLL) has received its first trailing product sales fee (TPSF) payment under the TPSF Deed, following initial spodumene concentrate shipments from the Goulamina Lithium Project in ... more
West Africa–focused Perseus Mining extends AUD100mn buy-back to August 2026
West Africa–focused gold producer Perseus Mining Limited (ASX/TSX:PRU) has extended its on-market share buy-back for a further 12 months after failing to acquire additional shares during the first ... more
Most Read
-
US expands oil sanctions on Russia
30 days ago
-
India’s smart metering push gains momentum
4 months ago