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MAINTAIN MONETARY POLICY RATE AT 8.50P.C – ECONOMIST

By MUKWIMA CHILALA

ECONOMIST Kelvin Chisanga says there is need for the Bank of Zambia to maintain the monetary policy rate at 8.50 percent following factors indicated from monetary transmission mechanisms that are being positively recorded in the third quarter. The central bank yesterday announced its Monetary Policy rate to mark the end of the third quarter of the year.

Mr. Chisanga says the reductions in inflationary pressure, has started giving hope to the economic recovery process models, on account of reduced political risk, sustained food supply and steady movements in the foreign exchange market fundamentals. He however observes that if the announcement of the policy rate and Bond Auction will not trigger some effect to the stability of Kwacha’s movements, the currency might cross the psychological barrier to which it is likely to start trading around K18.00 against a unit of US Dollar.

Mr. Chisanga adds that the 2021 third quarter has had some huge positives on both fiscal and monetary sides, with the general economic overview signaling some positive movements, as Zambia is now taking a slow-paced recovery and growth process stage.

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