BoZ Holds Policy Rate at 14.5% to Support Growth, Credit Access and Economic Stability

The Bank of Zambia (BoZ) has maintained the Monetary Policy Rate at 14.5%, signaling confidence in the country’s macroeconomic stability and a cautiously optimistic economic outlook.

According to renowned economic expert Kevin Chisanga, the decision by the Monetary Policy Committee (MPC) is rooted in signs of a promising harvest season and other stabilizing indicators. 

“The policy rate remained unchanged, as it continues to influence domestic economic fundamentals, supporting the case for an accommodative policy framework aimed at promoting stable economic growth, anchoring the credit basket, and enhancing other financing models,” Mr. Chisanga said.

The MPC weighed a variety of economic factors before deciding to hold the rate, emphasizing the need to maintain a financial environment that supports ongoing economic recovery. 

“The underlying rationale for maintaining the current rate is to support the ongoing economic recovery by facilitating a conducive financial environment,” Mr. Chisanga noted.

He further emphasized that keeping the policy rate stable is key to balancing access to credit for Small and Medium Enterprises (SMEs) and achieving broader economic goals. 

“Policy rate stability is crucial to striking a balance between credit access for SMEs and broader economic growth,” he said.