The Bank of Zambia has reduced the policy rate to 10.25 percent from 11 percent.
And the central bank has also reduced the statutory reserve ratio to 8 percent from 9.5percent.
Speaking at a media briefing in Lusaka today, Bank of Zambia Governor Denny Kalyalya attributed the reduction to the continued improvement in the economic activity such as improved interest rates that have broadly and continued to decline.
He has however said commercial banks’ lending rates have remained high and credit to the private sector has continued to be subdued.
Dr Kalyalya says the Bank of Zambia will closely monitor domestic and external sector developments and stands ready to implement measures to maintain price and financial system stability and ultimately support economic diversification and growth.