By BUUMBA CHIMBULUTHE Bank of Zambia (BoZ) should not make any revisions to the monetary policy position and statutory reserves as doing so may spike inflation at a faster rate or add liquidity pressure in the financial market.The Monetary Policy Committee (MPC) had in its first meeting on February 17, this year hiked rates 50 basis points to 8.5 percent which marked the genesis of the rate hiking cycle pressured by an eminent exchange rate rout.The MPC is today once again set to announce the policy rate for the second quarter of this year.Some stakeholders such as Caesar Cheelo, a local economist at Equilibria Consulting Limited have predicted that the BoZ would not make any adjustments to the policy rate.Mr Cheelo urged the BoZ not to revise both the policy rate and the statutory reserves.He explained in an interview that reducing upwards stimulate money demand for transactions at a faster rate, thereby increasing inflation rate […]
