By OLIVER SAMBOKO
IMPLEMENTATION of upward adjustment of monetary policy rate by 59 basis points as announced by BOZ will result in increased loan repayment which affect disposal income for citizens, the Zambia Consumer Association (ZACA) has observed.
ZACA Executive Secretary, Juba Sakala said government should relook at the decision as it has potential to create more misery for the already suffering citizens who have borrowed from financial lending institutions.
He said as a result of the adjustment, disposal income for those who had loans will reduce and for those who want to get loan will think twice before getting a loan.
Mr Sakala said this is of great concern because when disposable income reduces it means the citizens will not be able to meet their essential basic commodities, especially that the food basket is already way too high.
He said instead of the upward adjustment, the new dawn government through the Bank of Zambia, should have considered bringing it down or maintain the current rate until the economy stabilizes.
Mr Sakala has since urged BOZ and the Ministry of Finance to work out a mechanism that will ensure that the citizens are not suffocated.
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