The Bank of Zambia has noted that weakening economic growth, load shedding and tightening liquidity in Zambia are threatening financial stability in the market.
And the Central Bank’s Monetary Policy Committee has maintained the policy rate, a key determinant in lending rates, at 10.25 percent.
BoZ Governor Denny Kalyalya says the committee took into account projected inflation remaining above the upper bound of the 6.8 percent target range, tightened liquidity and reduced production owing to electricity challenges.
Dr. Kalyalya noted that increased food prices owing to droughts in the last farming season have also had a negative toll on inflation.
He says the above factors required the upward adjustment for the policy rate but the Central Bank had to hold it pending some measures by the Ministry of Finance.
Speaking during the MPC quarterly briefing in Lusaka today Dr. Kalyalya noted that global growth has equally weakened with demand for copper by China having reduced owing to decline in investment in emerging markets and reduction in global trade due to ongoing trade tensions between the USA and China among others.
And Bank of Zambia Deputy Governor Operations Francis Chipimo said access to finance has remained a challenge for private sector growth and investment.
Dr. Chipimo however said there are a lot of developmental issues being undertaken aimed at enabling the financial sector mobilize savings and lend money to investors with ideas.
I fail to understand the role of this central bank? Why should a borrower be punished for getting money at these commercial banks? Each time monetary policy rate is adjusted upward, even the tenor and interest rate go up respectively. This is day light robbery from these commercial banks. How can they be increase interest rate as well as tenor of payment on loans which are tied to a contract? Bank of Zambia should investigate this daylight robbery from these commercial banks. They are tying work lifespan of borrowers to loans. This Bank of Zambia is just full of rhetoric. It is not pragmatic. When one gets a loan of 5 years he or she expects that loan to be serviced within that timeframe in accordance with the agreement. Monetary Policy Rate should not inconvenience such a one.
It’s unfortunate that the Central bank is quoting wrong reasons for Zambia’s weak economy. It has nothing to do with China-U.S. trade tariffs. The reasons are clear. PF theft and corruption, PF incompetence and clueless on modern economic approaches. According to the 2018 Global Innovation Index report Zambia is ranked 4th from the bottom, out of more than 160 countries. This is scary for anyone who understands that innovation is the only effective strategy to growing an economy. PF is disaster for Zambia, now and in the future.
This is Greek to PF. Mwila just got his grade 12 certificate, Sunday and Mwanza are busy leaking the powers that be they cant direct the way forward.
Gloom gloom, and politicians that I know will call this fake news…… give me space to roll out development. If indeed PF has rolled out so much development why is the results so gloomy? Mealie high? Or was it wrong inefficient uneconomic development? Or corruption? Or too much roads and no factories? You have to balance out these things you know, not everything is ends at roads. Drought was there yes but the above factors have registered more impact, fact.
And the Central Bank’s Monetary Policy Committee has maintained the policy rate, a key determinant in lending rates, at 10.25 percent.”He said the above factors required the upward adjustment for the policy rate but the Central Bank had to hold it pending some measures by the Ministry of Finance.” always our central bank has been its party and it has really helped the country in this weak economy. I don’t see much from the fiscal policy side to help our economic recovery
Central bank must be working for HH now together with the IMF and other western credit rating agencies who predicted this…….they are all working for Hakainde
Yaba elo yakosa …….ha ha ha ha !!!!!
Yes my brother, this man must be a upnd cadre to say such things
Edgar Lungu has a sad legacy to leave for Zambia with all his economic indicators sliding southwards.
We are on record warning lungu that his uneconomical spending on roads that only have long term economic benefits risks Zambia at the mercy of the world economy and the climate…..
Lungu and PF better call for national prayers for good rains or its kuyabebele……to the jail house for most of them
You can take a f.ool from a compound, you can’t take the f.ool out of him.
When are the next national prayers? perhaps we should also fast to give our prayers more vava voom. A ka 14 day water fast and pray holiday wouldn’t be bad. Insala ila pela amano plus namapepo we will become Africa’s food basket in Jesus name, amen
Poverty up ,inflation up , debt up sharply , GDP growth down to 2% , farm yields down ,Kwacha exchange rate heading south and export earnings down. This dull report card indicates Lungu is an ” F” grade student in economic management.
Nosense!
He has the right man at the central bank and at ministry of finance, except he’s the wrong guy at the state house.
Indeed, a losing team can have the right team doctor and marketing man but if the manager is crap , it’s relegation……
Meanwhile our foooolish president is away touring India..really laughable …trying to woo Indian companies when he is kicking their brother out!!
I regret having stayed in Zambia. There is a lot of nonsense. At this point, I would rather have the boers run the country.
This is indeed a disaster for Zambia …i cry for my fellow Zambian, we have put wrong Brains in those office. They have failed to run the affairs of our country.