The Bank of Zambia says in the first half of 2020, monetary policy will focus on bringing inflation back to the 6-8 percent target range in the medium term.

In a statement issued to Money FM, Bank of Zambia Governor, Denny Kalyalya said the central Bank will continue to rely on the forward-looking monetary policy framework anchored on the policy rate as the key signal for the monetary policy stance.

Dr. Kalyalya further noted that the monetary policy remains supportive of the government’s macroeconomic objectives outlined in the 2020 budget speech And the Seventh National Development Plan.

“Higher than planned government domestic financing requirements and tight liquidity conditions in the market may drive interest rates upwards thereby crowding out the private sector.” He said.

“Therefore, there is need for effective and sustained implementation of fiscal adjustment and structural measures to address elevated debt levels and debt service, the continued accumulation of domestic arrears, and liquidity constraints.”