Today the Bank of Zambia will deliver its latest verdict on its key interest rate under new Governor Christopher Mvunga. At the August meet-ing, the Bank of Zambia (BOZ) reduced its key rate for the second time in a row, citing the need to safeguard the stability of the financial sector and counter the impact of the COVID-19 pandemic on the economy. Policymakers reduced the benchmark interest rate by 125bps to 8.00%, the lowest since the policy rate was introduced in March 2012. On the growth front, former Governor Denny Kalyalya indicated that the bank now forecasts the economy to contract by 4.2% this year, more than an earlier projection of a 2.6% contraction as the pandemic weighs on economic activity.
Please wait, loading...
