LUSAKA, Feb. 21 (Xinhua) -- Zambia's central bank on Wednesday decided to keep the lending policy rate at 9.75 percent, for the fifth time running due to subdued economic growth.
Denny Kalyalya, governor of the Bank of Zambia, said the Monetary Policy Committee, which met on Feb. 18-19, decided to maintain the policy rate as one way to ensure financial stability and support economic growth.
He told reporters during a press briefing that while some indicators show positive growth in economic activity, growth has continued to be subdued, with credit to the private sector remaining constrained and contracted in the fourth quarter of 2018, underpinned by elevated lending rates and persistently higher than programed fiscal deficits.
"By maintaining the policy rate at 9.75 percent, monetary policy is also intended to support financial sector stability and economic growth," he said.
The central bank chief, however, said prompt and effective implementation of fiscal adjustment measures remains critical in supporting sustainable macroeconomic stability and achieve higher growth.
