BOZ maintains policy rate at 9.75

At its July 2013 meeting, the Committee noted the continued presence of upside risks to the inflation objective arising from continued cost push pressures largely associated with pass-through effects of the depreciation of the Kwacha.

The Committee also anticipates that further inflationary pressures may arise from demand pull factors in the coming months.

The Committee observed that inflationary pressures may moderate on account of lower food prices due to seasonal improvement in supply and the waning effects of the recent upward adjustment in fuel prices following the removal of subsidies.

The Committee has weighed the inflationary risks and resolved that the monetary policy environment should remain tight during the policy-relevant period in order to be consistent with the end-year inflation objective.

This is according to a statement by Bank of Zambia Head of public relations Kanguya Mayondi on Wednesday, July 31, 2013.