Ms. Deka said the reduction in the policy rate has the potential to alter short-term interest rates in an economy, thereby influencing a level of economic growth and inflation.
Policy Rate which is also referred to as a Central Bank Policy Rate is used by BOZ to implement or signal its monetary policy stance
The Bank of Zambia held a press briefing to make a policy announcement on Thursday 10th August, 2017 at the Bank of Zambia premises.
“We commend the Bank of Zambia (BOZ) for reducing the Policy Rate from 12.5 per cent to 11 per cent and the Statutory Reserve Ratios from 12.5 per cent to 9.5 per cent respectively” Deka said
Meanwhile, Patriots for Economic Progress (PEP) president Sean Enoch Tembo has questioned the decision by the Bank of Zambia (BOZ) to make a downward revision of the Monetary Policy Rate (MPR).
Tembo, a seasoned Business and Economic Consultant, is doubting how sustainable the easing of the monetary policy will be in the medium to long term given that all economic indicators are pointing towards an upward inflationary trend alongside a widening fiscal deficit.
Tembo says the inflationary impact of the 50 per cent increment in electricity tariffs earlier this year has continued trickling down to the rest of the economy noting that in June and July its initial impact was offset by the decline in inflation resulting from the bumper harvest.
The opposition leader has since predicted a 7 per cent rise in inflation this month which might further reach 10 per cent in the months to come.
“The decision by the Bank of Zambia (BOZ) to make a downward revision of the Monetary Policy Rate (MPR)” Tembo said
Mr. Phiri disclosed that a 53 year old man whose names have been withheld later reported that K32,000 was stolen from his house by a sex worker .
After a drinking spree at a night club, the victim decided to take the suspect to his house where the suspect later bolted with K32,000 cash as her client .
Mr. Phiri however said police officers later arrested the sex worker after a tip off . K12,000 was recovered of the stolen money.
The suspect has since been arrested and detained at Mpika police station and will appear in court soon.
PMRC has no credibility. Its a big joke.
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Kuwayawaya chabe aba.. Getting rich on the backs of politicians and masking it with data yaboza
what are the implications of the downward revision of policy rates on our economy, given our current economic condition. what does this mean for the average zambian, how does this benefit them, if at all it does?
if you can please respond as soon as you can