Plummeting inflation prompts Bank of Zambia action
Central bank cuts policy rate by 150bp, in addition to cut to overnight lending rate and reserve ratio
A dramatic drop in Zambia's inflation allowed the country's central bank to make drastic changes to its monetary policy stance at its latest meeting, held today (February 22).
In a statement, the Bank of Zambia (BoZ) announced its monetary policy committee (MPC) had not only taken the decision to reduce its policy rate by 150 basis points to 14%, but also to "restore" the overnight lending facility rate to 600bp above the policy rate – a cut of 400bp. It also reduced the reserve ratio from 15%
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