One point worth noting is that the volatility of international financial markets has diminished. In the domestic monetary policy front, a significant development of recent months has been increased inflation, which is now above 4 percent in annual terms. Although this was expected to some extent because of inflation’s previous level and especially because of the normal pass-through of the exchange rate depreciation to domestic prices, the actual figure exceeded not only our latest IPoM’s forecasts but also private expectations. Our projection scenario assumes that inflation rising above 4 percent is a temporary phenomenon and that it will return to 3 percent annually within our normal monetary policy horizon, a vision that is also reflected in medium-term private inflation expectations, which have remained at 3 percent. In this context, the Board has communicated that it will consider the possibility of making additional cuts to the monetary policy rate in line with the evolution of domestic and external macroeconomic conditions and its implications on the inflationary outlook. The slowdown in output and demand should take pressure off future prices, but in an environment of already expansionary monetary policy and where prices have risen above projections, it is necessary that the Central Bank carefully weigh the risks surrounding its decisions. Let me now share with you our baseline scenario and the main risks we have covered in the two reports I am presenting. Macroeconomic scenario The y-o-y variation of the different CPI measurements has increased significantly in recent months, and as I said, more than foreseen.
This support has taken various forms, including the following:   Salary supplementation to fifteen (15) academic staff in the Department of Economics at UNZA and nineteen (19) academic staff in the School of Business at the Copperbelt University (CBU);    Full sponsorship of five undergraduate students at third and fourth year level at CBU and five students at Masters Degree level at UNZA;    Financial support in the acquisition of books and periodicals;    Purchase of equipment such as computers and computer software. The Bank of Zambia acknowledges the various efforts being made by the University to improve its infrastructure and the delivery of quality university education and research. We are also mindful of the various funding constraints faced by the University as it expands its programmes to meet the ever increasing demand for its services. The Bank is therefore, proud to respond to the University’s call for partnership with industry and other stakeholders in order to realise its noble objectives that cannot presently be fully funded from public resources and students fees. In this regard, the Bank of Zambia has seen it fit to not only extend this support, but to also streamline and enhance it in order to better align this support with strategic objectives of both the Bank and the University. Ladies and Gentlemen; as you are aware, the Bank of Zambia has been providing financial support for the purpose of promoting scholarly and academic excellence in research and instruction at the University of Zambia.