Sat, 20 May 2017 10:49:34 +0000 By BUUMBA CHIMBULU THE reduction of the lending rate benchmark by 150 basis points will open up opportunities for businesses to invest more aggressively as they will be borrowing on a medium-term foundation, the Private Sector Development Association (PSDA) has observed. The central bank this week reduced its monetary policy rate to 12.5 percent from the previous 14 percent, representing a 150 basis points. It cited lower inflation rate and subdued economic growth as one of the parameters taken into account. It also reduced the statutory reserve ration by 300 points to 12.5 percent from 15.5 percent. And PSDA chairperson, Yusuf Dodia, observed that the private sector now had a chance to invest aggressively in their businesses. “This development opens up opportunities to invest more aggressively, but as I said businesses will move from short-term to medium-term borrowing which means they will begin to be productive as opposed to […]
