Sat, 25 Feb 2017 11:30:11 +0000 THE reduction in the monetary policy rate by the Central Bank from 15.5 percent to 14 percent will set the pace in reducing the cost of funding for Commercial Banks, says the Bankers Association of Zambia (BAZ). Monetary policy consists of the actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. According to BAZ public relations officer Mirriam Zimba, the development would set the pace in reducing the cost of funding for Commercial Banks in view of the additional liquidity that had been pushed back into circulation. “BAZ welcomes the decision by the Central Bank through the Monetary Policy Committee, of unwinding liquidity through the reduction of the Statutory Reserve Ratio from 18 percent to 15.5 percent as well as the reduction of the monetary policy rate from 15.5 […]
Policy rate to reduce cost of funding for commercial banks
