Zambia's central bank keeps benchmark rate at 9 pct as inflation rate declines

The Bank of Zambia retained its benchmark lending rate at 9 percent as its the annual inflation rate continues to trend down towards its target range of 6 percent -8 percent, the bank chief Denny Kalyalya said on Wednesday.

There remained some upside risks to the inflation outlook such as the increase in the crude oil prices on the world market, possible lower crop production due to adverse weather conditions and lingering supply chain bottlenecks induced by the COVID-19 pandemic, Kalyalya told reporters during a press briefing.

"Decisions on the policy rate will continue to be guided by inflation forecasts, outcomes, and identified risks, including those associated with financial stability and the COVID-19 pandemic," he said.