Bank of Zambia has announced that it will maintain the policy rate at 9.75 per cent.
This is the fifth time that the Central Bank has maintained the Monetary policy rate at the same percentage.
Bank of Zambia Governor Denny Kalyalya explains that the monetary policy Committee has continued to focus on maintaining inflation within the 6 to 8 target range.
Dr Kalyalya says projections suggest that Inflation will remain within 6 to 8 percent over the next 8 quarters and much closer to the 8 per cent upper bound of the range.
Speaking when he announced the Monetary Policy Committee statement for the fourth quarter of 2018, Dr Kalyalya has explained that there is continued slow economic activity and that the private sector credit growth remains slow.
He has pointed out that there is slow progress towards fiscal consolidation as reflected in rising domestic arrears, public debt and external debt service.
The Central Bank Governor further said inflationary pressures persisted in the fourth quarter of 2018 with inflation rising to an average 8 percent from 7.9 per cent in the third quarter.
He has attributed this to an increase in fuel prices and depreciation of the Kwacha against major foreign currencies among other factors.
Dr Kalyalya said the Kwacha depreciated by 15.3 per cent against the United States dollar, mainly in September 2018.
He said global growth is estimated to have slowed down to 3.7 per cent from 3.8 per cent in 2017 while in 2019, global growth is projected at 3.5 percent.