LUSAKA, May 17 (Xinhua) -- Zambia's central bank on Wednesday cut its key benchmark policy lending rate by 150 basis points to 12.5 percent from 14.0 percent.
Denny Kalyalya, the head of the Bank of Zambia (BoZ) told reporters at a press briefing that its Monetary Policy Committee decided to cut the rate after considering the prevailing economic situation in the country.
Among the economic conditions cited included lower inflation rate and subdued economic growth.
The central bank also took into consideration the prevailing high ending rates, which have continued to constrain access to credit by the productive sectors of the economy.
The southern African nation has seen its year-on-year inflation rate declining to 6.7 percent last month.
The central has also reduced the statutory reserve ratio by 300 basis points from 15.5 percent to 12.5 percent.
