The central bank announced held the policy rate at 12% for the second quarter of 2014. The decision was driven by reduced inflationary pressures from an anticipated improvement in food supply (good crop harvest and maize surplus) and the effects of policy tightening in the first quarter of 2014. The committee forecasted second quarter inflation to reduce to 7.3% while citing the recent fuel price hike and further Kwacha depreciation as upside risks to their inflation forecast.
The central bank’s policy statement also released other very important pieces of data (you can download the full statement here) – we picked out some key ones below:
Their next policy rate decision will be made on August 7th 2014.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *