Kalyaya says Bank Of Zambia will monitor financial sector

Kalyaya says Bank Of Zambia will monitor financial sector

By Lame Itisen

BANK of Zambia governor Dr Deny Kalyalya says the central bank will continue to closely monitor the country’s financial sector.

Officiating at the ninth Bank of Zambia seminar for members of parliament in Siavonga on Saturday, Dr Kalyalya said the Bank of Zambia would ensure the financial sector effectively played it’s role as a key contributor to the growth of the economy.

“As you may be aware, on 22 February, 2017, the monetary policy committee (MPC) adjusted the Bank of Zambia Policy Rate, Statutory Reserve Ratio and Overnight Lending Facility rate based on the new forward looking monetary policy framework. This decision followed the projected inflation falling within the medium term target of six to eight per cent. This will encourage provision of credit to the private sector and support financing system stability,” said Dr Kalyalya.

“It is important to emphasise that the success of this new framework ultimately depends on the credibility of the central bank. This credibility is, among other things, based on the central bank’s ability to execute it’s mandate without undue influence or interference. For example, over the past 18 months when we faced some serious economic challenges, the Bank of Zambia took important monetary policy actions that helped to reduce inflation from a peak of 22.9 per cent in February 2016 to 6.8 per cent in February 2017 as well as bring relative stability to the exchange rate.”