BOZ WARNS OF HEIGHTENED YEAR-END INFLATIONARY PRESSURE

Zambia’s central bank has warned of an upward risk of inflation for the month of December 2012.

The Bank of Zambia’s monetary policy committee has however noted that year-end inflation is projected within the 7 % target for this year.

The committee says the global maize grain deficit may induce higher inflation on the local front.

The recent depreciation of the local currency, the Kwacha, against the United States dollar, is another risk, which might precipitate increased year-end inflation.

But the kwacha, at end of business this week, closed at between 5,235 and 5,255 against the dollar.

However, the central bank has explained that keeping inflationary pressures will lie in stabilising the local price of the maize grain, as the Food Reserve Agency releases some of its stocks to the millers.

The annual rate of inflation, as recorded at the end of November 2012, was recorded at 6.9 %, up from 6.8 %, as at end of October.

Meanwhile, the Bank of Zambia has opted to maintain the policy commercial bank interest rate at 9.25 % for the month of December 2012.