Financial Advisor Kingford Kalobi says the decision by the bank of Zambia to increase the monetary policy rate from 9 to 9.25% is detrimental to economic growth and private sector participation.
Mr Kalobi tells Phoenix News that with the already constrained liquidity available on the market, any slight increase in the monetary policy rate adversely affects any prospect for growth especially for the private sector.
He explains that the cost of doing business is further likely to be negatively affected; a situation he says must be revisited to enable the startups to remain afloat.
Mr Kalobi explains that amidst other pressures exerted on the economy, raising the policy rate will further increase the cost of borrowing money from financing institutions to unacceptably high rates.
