Monetary Policy Rate Remains Unchanged as BOZ Faces Economic Pressures

The Bank of Zambia (BOZ) has opted to maintain the monetary policy rate (MPR) at 13.5%. This decision comes amidst a backdrop of significant economic turbulence, including severe droughts and other external shocks that have impacted Zambia’s economy and global economic regions.

Economist Kelvin Chisanga highlighted that dramatic climate changes have left many fundamental economic factors in a precarious state. These disruptions have had far-reaching effects across various sectors, including energy and food. 

According to Mr. Chisanga, the current MPR level reflects the BOZ’s response to these complex challenges, aiming to provide stability amid chaotic conditions.

He further noted that the previous policy benchmark, established in the last monetary policy committee (MPC) meeting, is yet to fully reveal its effects. 

Mr. Chisanga said that the full impact on prices and key household essentials will become clearer in the coming months, particularly as Zambia navigates a period of high import volumes in the third quarter and beyond.

M. Chisanga emphasised the need for accessible capital during these challenging times and urged support for business and investment opportunities to mitigate the adverse economic effects.