BOZ Launches First Monetary Policy Report
The Bank of Zambia (BOZ) has officially launched its inaugural Monetary Policy Report (MPR), marking a significant milestone in the country’s economic landscape. Dr. Denny H. Kalyalya, Governor of BOZ, presided over the launch during a Breakfast Meeting held today February 26th, 2024.
The launch ceremony was attended by a distinguished array of stakeholders, including government officials, members of the monetary policy committee, industry leaders, and representatives of various financial institutions.
Addressing the audience, Governor Kalyalya highlighted the importance of the MPR in enhancing transparency, accountability, and communication on monetary policy matters.
The establishment of the MPR is a product of the newly constituted Monetary Policy Committee (MPC), mandated by the Bank of Zambia Act, 2022. This statutory requirement underscores BOZ’s commitment to operational autonomy and improved governance practices.
Governor Kalyalya emphasized that the publication of the MPR is a departure from previous practices, where such reports were prepared solely for internal use. With this development, BOZ aims to provide stakeholders with detailed insights into the factors shaping monetary policy decisions, fostering informed dialogue and understanding.
The MPR offers a comprehensive assessment of inflation projections and macroeconomic developments over the next eight quarters, providing stakeholders with valuable insights into the MPC’s decision-making process. Furthermore, it serves as a credible reference document for policymakers, researchers, academics, and the general public.
BOZ’s monetary policy framework relies heavily on high-frequency data and rigorous analysis to forecast inflation and assess economic trends. The bank engages in regular data collection efforts, including surveys of business opinions and credit conditions, to inform its policy decisions accurately.
Governor Kalyalya expressed gratitude to stakeholders for their cooperation in providing essential data and feedback, underscoring the collaborative nature of monetary policy formulation.
He emphasized the importance of ongoing stakeholder engagement in shaping future policy decisions and fostering a deeper understanding of BOZ’s objectives and strategies.
With the launch of the MPR, BOZ aims to enhance transparency, accountability, and public understanding of monetary policy in Zambia. The publication of this report signifies a significant step forward in BOZ’s commitment to sound governance practices and effective economic management.
