By JAMES KUNDA –

THE Bank of Zambia (BoZ) says it has maintained a relatively tight monetary policy stance to moderate effects on inflationary pressures going forward.

BoZ head of public relations Kanguya Mayondi said pressure on the country’s inflation would continue to emanate from relatively high prices of selected food items due to the seasonal low supply.

Mr Mayondi said the Monetary Policy Committee of the Central Bank observed that developments in inflation have mainly been in line with projections, as it was recorded at 7.1 per cent in December 2013 from seven per cent in November last year.

“In the ensuing period, the Monetary Policy committee anticipates that inflationary pressures will continue to emanate from relatively high prices of selected food items due to the seasonal low supply.

“However, the relatively tight monetary policy stance that the Bank has been undertaking since the beginning of the last half of 2013 and the off-loading of maize grain on the market by the Food Reserve Agency (FRA), are expected to have moderating effects on inflationary pressures going forward,” Mr Mayondi said.

He said having assessed these risks to inflation, the Monetary Policy committee resolved to continue with the current relatively tight monetary policy stance and maintained the Bank of Zambia Policy Rate for February 2014 at 9.75 per cent.

Mr Mayondi said the next meeting of the Monetary Policy committee to review the Policy Rate will be held at the end of February, 2014.