• This is in consideration of the maintenance of inflation rate at single digit.
• Single digit inflation has been supported by fiscal consolidation measures arising from the securing of IMF Extended Credit Facility.
• There are no inflation challenges or growth inhibitors to warranty a shift of the MPR heading into 2023.

An Economist says the Monetary Policy Committee is likely to close 2022 by maintaining the Monetary Policy Rare (MPR) for the last quarter of the year at 9 percent.
Emmanuel Zulu told Money FM News in an interview that this is in consideration of the maintenance of inflation rate at single digit as captured by the Zambia Statistics Agency (ZamStats) in the past 3 months which currently stands at 9.7%.
Mr. Zulu explained that the single digit inflation has been supported by fiscal consolidation measures arising from the securing of the International Monetary Fund (IMF) Extended Credit Facility which has seen the exchange rate remain stable within the K16 mark against the US dollar.
He said according to ZamStats, the country’s Gross Domestic Product (GDP) growth is also positive at 3.5 and has continued to move towards the target mark, while economic activities as measured by the Purchasing Manager’s Index (PMI) have also been indicating positive movements, hence there are no inflation challenges or growth inhibitors to warranty a shift of the MPR heading into 2023.
“We still have work to do and I see that this may actually mean that the MPC maintain the MPR at 9.0% to achieve this target. And for the sake of accelerating growth, may not actually have to raise it further. Their interest is to ensure that there is enough liquidity in the economy and dropping it may also push the inflation target off the band because they may raise aggregate demand and also put pressure on prices.”
“The aspect of price stability is being actualized at this rate and it’s proving to be the suitable rate at the moment. We need to strike a balance between inflation rate and growth target and we have seen that the growth has been increasing as revealed by the ZamStats, economic growth rate is at 3.5 percent and we are coming from a point where growth was 2.0 meaning that we are on a positive trajectory in terms of the growth. So we do not see the MPC changing the Monetary Policy Rate at the moment,” Mr. Zulu stated.
He however said the MPC is expected to observe the inflation risks that may arise once energy tariffs are revised and also monitor the global depression projections as given by the World Bank.
Bank of Zambia is expected to announce the Monetary Policy Rate for the fourth quarter of 2022 on Wednesday, 23rd November, 2022.