We’ll protect positive outlook -BoZ
THE Bank of Zambia (BoZ) is working to mitigate the downside risks threatening the positive outlook of the economy by effecting measures which will improve the macroeconomic environment.
This is according to the Central Bank’s deputy governor-operations, Bwalya Ng’andu.
Dr Ng’andu said some of the downside risks would be mitigated by appropriate monetary policy measures from the Central bank.
He said the Central Bank was therefore ready to effect measures necessary to improve the macroeconomic environment and create a better operating landscape for business.
“With some of these downside risks in mind the Monetary Policy Committee has, on five consecutive times, reduced the Policy Rate and the Statuary Reserve Ratio.
“The recent decision to maintain the policy rate at 9.75 percent was taken against the backdrop of the continued projections of inflation pointing to low inflation over the eight quarter horizon, well within the medium target range of 6-8 percent,” he said.
Dr Ng’andu was speaking in an interview in Livingstone on the side-lines of the 2018 Insurance Conference.
He explained that in deciding to maintain the policy rate at 9.75 percent, the subdued economic growth and prevailing high lending rates were taken into account.
Dr Ng’andu said risks to the stability of the financial sector owing to high levels of non-performing loans and the unresolved fiscal imbalances that had lingered on since 2013 were also taken into account.
“Before the recent increase in inflation in the months of March and April 2018, inflation declined for seven consecutive quarters,” Dr Ng’andu noted.