Thursday, March 28, 2013

Zambia holds rate steady, inflation to ease in April

    Zambia's central bank held its policy rate steady at 9.25 percent, saying inflationary pressures should continue to moderate in April due to improved seasonal supply of food, mainly fish, vegetables and beef.
    The Bank of Zambia, which raised its policy rate by 25 basis points in 2102 but has held them steady this year, added that a continued supply of maize to millers by the Food Reserve Agency should also help keep inflation low in April.
    "This notwithstanding, cost-push pressure associated with the lagged pass-through effects of the depreciation of the Kwacha are likely to pose upside risks to the inflation outlook for April 2014," the central bank said, adding these risks had been weighed in the decision to hold rates steady.
    Zambia's inflation rate fell to 6.6 percent in March from February's 6.9 percent.
    In 2012 Zambia's Gross Domestic Product expanded by 7.3 percent from 2011.


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