Economist Noel Nkhoma says maintaining the policy rate at 9 percent for a fourth consecutive time shows the desire of the central bank to stabilize the economy, which has relatively been achieved so far.
The Bank of Zambia during its third quarter monetary policy committee media briefing on Wednesday this week maintained the monetary policy rate at 9 percent for four consecutive times.
Commenting on this development in an interview with Phoenix News, Mr. Nkhoma is of the view that there is a constriction of credit as the policy rate is trying to restrict credit into the market.
Mr. Nkhoma adds that despite the maintenance, there is need to get liquidity back into the market which can be achieved by attaining satisfactory stability, and reaching a stage where the country will be sure that releasing liquidity into the market will not create another problem on the banking sector.
And commenting on Central Bank Governor, Denny Kalyalya’s remarks that the current economic growth is not sufficient to address poverty levels in the country, Mr. Nkhoma says as long as the country remains in a mono economy dependent on the mining sector, it will remain vulnerable owing to the fact that the sector is currently not performing well.