CENTRAL BANK MAINTAINS MONETARY POLICY RATE FOR JUNE

The Bank of Zambia has maintained the monetary policy rate at 9 per cent for the month of June 2012, as earlier stated at the same rate for the month of May.

This follows the central bank’s assessment of downside and upside risks on the 7 per cent targeted year-end inflation for this year.

The bank’s decision to maintain the policy rate at 7 per cent is due to its projected steady and favourable international trade performance for the month of June.

This is despite the noted weak global economic growth, underpinned on the continued sovereign debt crisis affecting the Euro zone economies.

The bank of Zambia has however stated that it foresees increased merchandise export volumes for Zambia, owing to favourable macroeconomic environment and the seasonal improvement in food supply.

The central bank has also attributed the steady 6.1 per cent inflation rate on the increased food supply situation.