An Economist in Luapula Province has expressed confidence that the prices of goods and services will stabilize following the increase in the Monetary Policy Rate (MPR) by the Bank of Zambia (BOZ).
The Bank of Zambia announced a 50-basis-point increase in the monetary policy rate, raising it to 14 percent. The adjustment, made by the Monetary Policy Committee, is intended to address inflationary pressures.
Reacting to the decision by BOZ, economist Danny Mpasa notes that while the higher MPR will lead to increased borrowing costs from commercial banks, it remains the most effective way to control inflation and stabilize prices.
“The increase in the MPR will help keep inflation under control and stabilize prices,” said Mr Mpasa.
“Although higher interest rates and reduced borrowing might limit liquidity in the economy, this measure will ease the pressure on the kwacha and provide relief.” He added.
Mr Mpasa adds that despite the restricted liquidity in the economy, the move is likely to slow the depreciation of the kwacha against major international currencies, bringing some financial stability.
Meanwhile, Business and Development Expert Emmanuel Munsanje has urged civil servants to avoid taking high-interest loans in light of the adjusted MPR but rather adopt a savings culture.
Mr. Munsanje warned that relying on expensive loans could lead to financial difficulties and frustration among government workers.
“With commercial bank loans becoming more costly, I urge government workers to explore alternative financing options provided by government programmes such as the CEEC and CDF, which have more affordable lending rates,” said Mr. Munsanje.
Mr. Munsanje also commended the government for awarding civil servants a pay rise of K500 across the board.
With so many learned Economists scattered hroughout zambia
I am going to zip it
I lost my job and there was no hope for me. I suffered looking for a job and luckily I came across Mr Bernie Doran on a review about Forex, NFT, Binary, and Crypto trade. I borrowed $500 from a colleague to invest with his trade platform , thank goodness I made a profit of $5,500 on the first week, reinvested $2000, and withdrew the remaining balance directly to my bank account. I was able to pay my friend, and convinced her to invest as well. I’m very grateful to him for helping me
manage my trading account. I will advise all of you who want recover your lost funds and to invest for the future and a better tomorrow should start with Mr Bernie Doran, he has the best signals and strategies on the trade market
Contact him on Gmail: Berniedoransignals@ gmail. com
Monetary Policy Rate To Stabilize Commodity Prices
Dream on HH. Dream on Kalyalya
Without serious efforts to end the crippling blackouts, such measures will amount to naught.
We all have sms’s from zesco stating loadshedding hours increasing
with Kariba level now at 3.7% full
How did they allow it to get to this ??
El Nino is NOT the only cause
Civil servants can get cheaper loans but what about ordinary people?
Just join BRICS.
They dont entertain applications. They only invite
They talk with one thing in mind…. maybe HH will consider me for some position. I’m a not genius but I know business houses normally borrow for their businesses…so if the interest has been raised how is this going to bring prices down. Only a fish goes to bite from the same hook that has just missed to catch it.
Lets keep the zesco issue rellivant
Kariba North bank manager state early rains have raised the water level 5cms and has improved power generation REALLY ?? when ZRA is reporting the dam level is only 3.7% full
This just baffles me like everything alse they same
#Tikki as long as Zesco is a government entity we will never be told the true situation. I suspect Henry Kapata was replaced with that uncouth looking boy because he may have tried to be a bit ” professional.
Everyone is bettimg on the $. When the Kwacha appreciates, it is not because BOZ Governor has done his job well or that the UPND policies are any better. The world is dollarised and Zambia is a hopeless pony screwed all the time on the Russian game of Chess. Our currency only gains in value when the dollar tumbles. Let’s keep on fire fighting as usual.
We have never had increased liquidity. Only scacity in everything.
So does it mean I can get 14% interest on my savings? Or does the MPR only apply when lenders are taking interest from nkongole