Opposition Green party leader, Peter Sinkamba has commended the Bank Zambia (BOZ) for the effort to control the surging inflation in the country.
Mr. Sinkamba has advised BOZ to manage the interest rate in order to regulate liquidity.
Mr. Sinkamba urged the Bank to put up measure that will regulation the inflation rate or risk reaching hyperinflation levels such as the experience for Zimbabwe.
“The onus is on Bank of Zambia to be on top of things by applying the monetary policy well to ensure that these issues are sorted out. Otherwise inflation is not good for the economy because it makes a lot of things to escalate,” Mr. Sinkamba said.
He said commodity prices have become out of reach for the poor and those whose salaries and wages are not marching the ever rising inflation.
Mr. Sinkamba further urged the BOZ to be smart in applying the monitory policy to ensure that economic growth is not affected as such will push inflation higher leading to low production of goods and services.
The Green party leader attributed the inflation in the country to low production of goods on the market and hence making consumers to share a few commodities on the market.
The Bank of Zambia announced the increase of the monetary policy rate by 50 basis points from 8 to 8.5 percent as a way to stop the rising inflation.