B.O.Z maintains policy rate at 9percent

The bank of Zambia (BOZ) has maintained the central banks monetary policy rate at 9.0percent.

B.O.Z governor Dr Micheal gondwe says the banks committee has weighed the inflation risks and has determined that the inflation during the policy relevant period will remain largely consistent with the end-year target of 7percent.

Dr Gondwe however says the committee has noted that inflationary pressures may arise from continued increases in the prices of meat products and the potential impact of the protracted euro zone crisis.

The central bank governor has stated that the committee anticipates inflation pressures in august to be subdued, largely on account of the expected positive impact of stable mealie-meal prices following the seasonal improvements in maize supply.

He says this will also be coupled with continued stability in fuel prices and the pass-through effects of the recent appreciation of the exchange rate.

Meanwhile Dr Gondwe has appealed to the media to continue helping the central bank sensitizes the public on the rebasing of the kwacha.

Dr Gondwe however could not state when the new notes will be in place or in circulation.