Zambia's central bank cuts lending rate
Zambia's central bank on Thursday cut its benchmark lending rate, a key determinant for interest rates, by 150 basis points.
The Bank of Zambia (BoZ) cut the benchmark lending rate from 12.5 percent to 11 percent, citing lower annual inflation and subdued economic growth.
"Inflation has been declining and we see that it will remain within the medium term target range of 6-8 percent. We also noted that economic growth has been sluggish," Denny Kalyalya, the central bank governor said in a statement.
The central bank also reduced the statutory reserve ratio by 300 basis points to 9.5 percent from 12.5 percent, he added.
The central bank further said economic growth prospects over the medium term are expected to improve with Gross Domestic Product (GDP) growth for 2017 and 2018 revised upward to 4.3 percent and 5.1 percent from 3.9 percent and 4.6 percent respectively.
The upward revision reflects mainly increased agricultural output, recovery in electricity generation as well as higher mining output supported by better prices and electricity.