Denny H Kalyalya: Launch of the 2023 Banking Industry Survey Report by PwC
Speech by Dr Denny H Kalyalya, Governor of the Bank of Zambia, at the Launch of the 2023 Banking Industry Survey Report by PWC, Lusaka, 26 August 2024.
The views expressed in this speech are those of the speaker and not the view of the BIS/UDFSpace.
Introduction
·The Survey is a very useful tool to many stakeholders, including ourselves.
·The 2023 Report is the Eighth edition. We commend Pwc for this initiative and we appreciate the cooperation of the respondents.
·The 2023 Survey Report raises a lot of important issues. However, will focus our brief comments on three top issues raised by respondents:
♦State of the local economy;
♦Liquidity risk; and
♦Cybersecurity
State of the local economy
·Will look at the state of the local economy through the lens of our recent Monetary Policy Committee meeting.
·The MPC maintained the Monetary Policy Rate at 13.5 percent. While actual and projected inflation remain elevated relative to the 6-8 percent target band, the Committee judged that the current monetary policy stance is appropriate.
·Inflationary pressures have persisted, with inflation rising to an average of 14.6 percent in the second quarter of 2024 from 13.5 percent in the first quarter.
·Persistent depreciation of the Kwacha against major currencies and rising prices of food (maize grain, maize products, and vegetables) and energy, particularly fuel, due to constrained supply continued to drive inflation up.
·These factors remain key risks to the inflation outlook, exacerbated by extended hours of electricity load management, continued geopolitical conflicts and tight global financial conditions.
·Inflation is, however, forecast to moderate to 12.7 percent in 2025, albeit higher than the 9.8 percent reported in the May 2024 Monetary Policy Report.
·In the first half of 2026, inflation is expected to average 10.8 percent.
First, please LoginComment After ~