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

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

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)

(c) Copyright Thomson Reuters 2021. Click For Restrictions – https://agency.reuters.com/en/copyright.html

Sign Up for Our Newsletter Daily Update

Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.