The Bank of Zambia (BoZ) yesterday kept its main policy rate unchanged at a record low of 8.0% to allow the impact of previous rate cuts to filter through the economy. Recall the BoZ has reduced the policy rate by 350bps this year. The bank noted that financial stability remains frag-ile despite signs of a marginal improvement in economic activity in Q3 following the lifting of some lockdown restrictions. While economic growth is expected to recover in the near-term, limited fiscal space, as well as uncertainty surrounding the coronavirus pandemic, are factors seen as downside risks to growth prospects. For 2020 economic growth is forecast to contract by 4.2%. In order to return to macroeconomic stability and fiscal fitness, the bank cited the successful navigation of the debt restructuring process, the implementation of fiscal and other structural reforms as being key.