THE Bank of Zambia (BoZ) has further squeezed liquidity in the economy by lifting the benchmark cost of money for the first time since November 2021.This is meant to curtail a slide in the Kwacha that is placing upward pressure on inflation rate.Recently, the Central Bank raised the statutory reserve ratio on commercial banks deposit liabilities by 2.5 percentage points to 11.5 percent as an additional measure to minimise exchange rate volatility.Yesterday, the BoZ Governor, Denny Kalyalya announced that the Central Bank Monetary Policy Committee had decided to increase the policy rate to 9.25 percent from nine percent to further curtail a slide in the Kwacha.Dr Kalyalya explained that the decision was taken because of mounting inflationary pressures stemming from the Kwacha, which was weakening as a result of negative sentiments arising from the protracted debt-restructuring negotiations.He regretted that the depreciation of the Kwacha had persisted in 2023, with the currency trading at K19.33 per […]
BoZ squeezes more money from circulation
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