Objectives of Monetary Policy
Monetary Policy Objectives
The primary objective of monetary policy is Price stability. The price stability goal is attained when the general price level in the domestic economy remains as low and stable as possible in order to foster sustainable economic growth. Instability in the general price level is undesirable as it brings about uncertainty and instability in the economy, thereby discouraging investment and hampering economic growth. In Zambia, the price stability objective is attained through the achievement and maintenance of inflation within the target range of 6 to 8% over the medium-term.