THE Economics Association of Zambia (EAZ) has advocated for a broader approach that includes open market operations (OMO) and other liquidity management tools to stabilise the economy without heavily burdening borrowers. Mbanji Milambo, the EAZ vice president noted that by allowing market forces to play a more significant role in balancing demand and supply, the Monetary Policy Committee (MPC) could help manage inflation without overly constricting economic activity. Furthermore, Mr Milambo said a targeted focus on enhancing local production in essential sectors such as agriculture and energy would alleviate cost push inflation and reduce the country’s reliance on imports, ultimately easing pressure on the Kwacha and helping to stabilise the currency. Mr Milambo said this in a statement issued yesterday in reaction to the Monetary Policy Rate announced by the Bank of Zambia which was increased to 14 percent. “To achieve the intended inflation, target sustainably, the EAZ recommends a balanced approach where monetary policy […]
EAZ calls for a broader approach to stabilise the economy
