Maravi

BoZ expresses inflation fears

BoZ expresses inflation fears
By Kabanda Chulu
Sat 01 Sep. 2012, 10:20 CAT

THE Bank of Zambia has warned that the proposed increase in electricity tariffs and rising mealie meal and meat prices are posing serious possible risks to inflation. And the Bank of Zambia (BoZ) has maintained the policy rate at nine per cent for September 2012.

In a communiqué issued by the Monetary Policy Committee of the Central Bank yesterday, it was, however, noted that the possible risks to inflation are likely to be moderated by expected stability in the foreign exchange rates.

"We have noted upside risks to inflation in September 2012 to include the proposed adjustment in electricity tariffs and the rising mealie meal and meat prices," it stated. "These inflation risks are, however, likely to be moderated by the relative stability in the exchange rate as well as stable prices of fuel, fish and vegetables."

It stated that during the policy relevant period, inflation would be broadly in line with the end year target of seven percent.

"The Committee has weighed the inflation risks going forward and it has noted that during the policy relevant period, inflation will be broadly in line with the end-year target of seven per cent. Therefore, the committee decided to maintain the policy rate at nine percent," stated the communiqué.

Labels: BOZ, INFLATION

posted by MrK @ 2:31 PM