A key priority of the Bank of Zambia (BoZ), the central bank, is to maintain price stability. Over the long term the BoZ plans to shift from setting monetary aggregate targets to setting a policy interest rate. However, the transmission mechanism between the interbank rate and commercial banks' lending rates is weak, and this shift is unlikely to occur in 2011-12. Demand-side management will remain strong, but this will not guarantee price stability, as prices will continue to be shaped by supply-side factors-particularly food production. The BoZ will remain committed to an exchange rate that reflects market fundamentals, but will intervene in foreign-exchange markets to prevent undue volatility in the kwacha. Despite this, the exchange-rate is likely to stay fairly volatile because of the economy's dependence on copper.