Fourth Revolution President Erick Chanda has described the move by the Central Bank to raise the policy rate to 15.5% from 12.5% as murderous.
On Tuesday the Bank of Zambia announced a rise in the base lending rate from 12.5% to 15.5% in an effort to curb the inflation that has spiraled. The current inflation rate is 14.3% year on year.
Mr. Chanda said it is very clear in the minds of the Zambian people that the PF came to destroy the country’s economy once and for all.Mr. Chanda said that the move by the Bank of Zambia to raise the policy rate to 15.5% from 12.5% in an effort to curb soaring inflation which hit double digits in October is a wrong resolution.
[pullquote]I don’t see Zambians voting on load shedding, I don’t see Zambians voting on mine closures, I don’t see Zambians voting for high mealie meal prices[/pullquote]
‘This policy measure, as much as it is aimed at arresting inflation will only go to hurt the poor people because companies will increase prices to pay back the loans or close shop,’ he said.
Mr.Chanda charged that the PF will not rule Zambia beyond 2016 because of its loss in popularity.He said the social and economic challenges the PF has brought since 2011 will make it difficult for Zambians to give them fresh mandate.
Mr.Chanda said PF leaders are now blinded by power and are now enjoying and failing to see the misery they have caused.
‘I don’t see Zambians voting on load shedding, I don’t see Zambians voting on mine closures, I don’t see Zambians voting for high mealie meal prices, so the only way for the PF is to go out in 2016’ Mr Chanda said.
Its all gun-blazing to Lungu from all walks of life. Sir, the ball is in your court. Will you outmanoeuvre? God willing you will.
For anyone who is not eating together with MPs in PF, it is impossible to support a party like PF. How can anyone support a party which resides over grade 9 exams which are administered into the following morning 03 hours. Who supports a party with a minister calling lecturers goats? Information minister calling for lose of jobs for others when he has destroyed the economy? Really PF is a true example of Project Failure (PF)
iliko bad, to say the least, iliko bad but.
Edgar Lungu is the most useless president in Africa. The man is politically blind.
BA HILDAH MULICHIPUBA NA BA UPND BENU.
Some people just talk negative about everything because it sounds cool! Increasing the MPR means that the Kwacha becomes expensive and scarce curbing both inflation and the exchange rate. The risk is that such an increase means that SMEs do not have the usual funding at lower rates and could result in job losses et al but these would only happen if the increase was drastic, say by more than 4%.
Your argument is not complete for the following reasons;
1. the interest rate above 10% is difficult to support new entrants into business sector, have taking it to 15% makes it worse. The reason why China and other countries have the highest number of new business startup is low interest rates (ranging from 0 to 5%)
2. making the kwacha scarce only works for the local people, however, it will be attractive to the foreign investors, like was the case under Chiluba rule. On the local market business will become slow and more unbearable
3. Zambia has a very small proportion of people in formal employment, hence any disturbance in the liquidity through Open Market Operation (which supports the flotation of the TBs) has dare outcomes on the local economy.
Hopefully next time you…
We shall keep on informing the poor who are the masses on the need to vote pf out frm power come 2016 bcos they brought misery to the economy no wonder ministers like katema is still in hangover with his tribal politics,including their boss ECL who dont understand the one zambia one nation motto which he has abused, others say pf govt not to blame on all these hardships we ar going through under pf regime,hw do u expect such ministers to put their heads 2getha and find solutions to current economic challenges?think beyond yo nose u pf cadres/money mongers
There is no such thing as voting out. The ballot is clear. Jst vote for ur candidate mr squid
PABWATO IS SINKING! PF IS SINKING! THE BOAT IS SINKING! WE WANT CHANGE. WE WANT CLEAN NEW GOVERNMENT. WE WANT FRESH BRAINS. WE WANT HH. WE WANT UPND. VIVA UPND VIVA! VIVA HH VIVA!
Why worry ! If your opponent is making mistakes. Just wait 2016 we know you opposition of this nation ,you will share few votes and Lungu will win.
It’s not just about who wins, but also the hardships that people are being subjected to in the interim. The country is being destroyed.
The 45-man delegation trip to China apparently did not yield anything.
Kanshi, why does this person carry a cross? There must be something wrong with him. He is like his brother in LA who spends time gossiping about the very friends he drinks with. They never say anything positive about others, always belittling and scandalizing. Kanshi finshi mwapepa imwe ba mambala? Forward with PF and Lungu!
Ba Chanda ikalenifye inga tamwishibe what you are talking about. Technocrats have come up with a measure but why oppose everything.?
PF may be voted out in 2016 but as usual the losers will simply change parties and keep ruling. Politics as usual.
isabi itampila kumutwe ukubola,… the presidency has so much power. if only we can put a competent and firm leader then all shall be well regardless of who joins.
Its PF and Edgar Lungu for 2016, Lungu has been in the office for only 9 months whilst PF its 4 years but a lot has been done.
Ba chanda just report back to school, finish you school first, mind you are now in third year. Note that our current Union President has failed in the final year and is out of campus.
KACHANDA MUPEPA PAMO NA HON HYENA HH FIMO MULEIKALA FYE PANTU ULUFYEGO LUBI. IN TANZANIA,POWER STATIONS ARE SWITCHED OFF. IMAGINE IF IT WAS IN ZAMBIA THE NONSE HH,NAWAKWI,MULONGOTI,CHANDA,AND OTHERS WOILD HAVE BEEN OUTERING. PIPO KNEW IT WAS NOT GOVT’S FAULT THEY ELECTED THE PRESIDENT BACK TO CONTINUE SOLVING PROBLEMS .GREECE DID THE SAME. PUTTING A NEW LEADER WILL MEAN GOING ROUND SAME PROBLEMS. DONT THINK PIPO DONT KNOW WHERE THESE ARE COMING FROM. LETS SUPPORT LUNGU TO SOLVE THESE PROBLEMS
what a disillusioned president u wud make for this country, that’s if u were even worth winning to hold the reins of presidency for this country. U wud actually lead the country into believing whatever u think u know is true to be true and substantial, when actually unfounded. What an unenlightened group of cadres wud b led into believing u at such utterances.Your information is unfounded and untrue.
Of course, the move by BoZ has some economic implications, but what u saying is not even one of them.
Who says the increase in the policy rate impacts on the funds that have already been lent into the market.
Go back to school Bakalamba, consult or leave the technocrats to comment on such pertinent matters.
Be professional when commenting on professional matters, bearing in mind that…
I think you people who are talking about UPND under HH you will cry come next year because as Zambians we are not going to change government any sooner its PF under Lungu’s leadership we need. We are educated and we read about global economy and we know the cause of all these problems we are going through. Our main export commodity in Zambia is copper and Government of Zambia has no power or influence in determining the price of this commodity hence they are blameless on this issue. We shall continue assisting our government in diversifying the economy as well meaningful citizens not just talking without input. VIVA PF 2016. We shall only consider UPND AS AN OPTION in 2021 after HH has handed over the party to some one who can bring change.
Ba Chumchum, you are also not enlightened. Interest is accrued on a daily basis. If you got some money last year at 24% interest and the bank increases its interest to 27% today, you will charged on the current interest rate of 27%.