The Bank of Zambia has maintained the policy rate at nine per cent for September.
Central Bank Governor Michael Gondwe says the policy rate has been maintained in view of the stable inflation rate which is expected to close the year within the range of 7 per cent.
Dr Gondwe announced the decision at a press briefing in Lusaka on Friday.
And Dr Gondwe says borrowers should use the policy rate as a bargaining chip when negotiating loans with Banks.
He says the policy rate was introduced to bring transparency in the setting of interest rates.
Dr Gondwe says the policy rate has also helped to reduce lending rates to as low as 16 per cent.
ZNBC
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But the increasing costs of doing business in Zambia have not allowed this to work for the common man. Also, with CNPs maning the key economic institutions of Zambia, we do not expect this process to be sustainable.
16% is real good, Dr G. Wow, good work. But just how has this been in Micro finance lending level.