The Bank of Zambia says the Kwacha will continue to be under pressure due to low dollar supply and pressure from the mining sector where most revenue is generated from.
Central Bank Governor Dr. Denny Kalyalya says a decline in nontraditional exports will also put pressure on the performance of the Kwacha as nontraditional export products are now being consumed locally.
Dr. Kalyalya also indicated that the current loading shedding that the country is experiencing is expected to have an adverse impact on economic growth.
He however, called on Zambians to take advantage of the current energy situation to invest in power generation targeting other sources of energy
Andthe annual rate of inflation is projected to be slightly above the end year target of 7-point zero percent in the third quarter of 2015.
Dr. Kalyalya says the development means that the bank’s policy rate remains unchanged at 12-point 5 percent.
He says the external and domestic risks to inflation must be balanced against the risks of a sharper decline in economic out put than is currently anticipated.
Dr. Kalyalya was speaking at a Bank of Zambia Monetary Policy Committee 2015 third Quarterly briefing held in Lusaka on Tuesday – ZNBC
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