Zambia’s hikes lending rates by 50ps, ready to tighten further

PUBLISHED: Wed, 17 Feb 2021 09:09:09 GMT

LUSAKA, Feb 17 (Reuters) – Zambia’s central bank raised lending rates by 50 basis points to 8.5% on Wednesday, saying it was ready to tighten further to tame rising consumer inflation driven by “cost-push” pressures and a sharp deprecation in the currency.

“The bank of Zambia stands ready to further tighten monetary policy,” Bank of Zambia Chris Mvunga said at a news conference. On the country’s debt restructuring, Mvunga said government was having “cordial discussions” with the International Monetary Fund (IMF).

Zambia became Africa’s first pandemic-era sovereign default late last year. It has requested a restructuring of its debt under a new framework supported by the Group of 20 major economies. (Reporting by Chri Mfula; Writing by Mfuneko Toyana; Editing by Alison Williams)

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