AN ECONOMIST in Luapula Province has expressed confidence that the prices of goods and services will stabilize following the increase in the Monetary Policy Rate (MPR) by the Bank of Zambia (BOZ). The Bank of Zambia announced a 50-basis-point increase in the monetary policy rate, raising it to 14 percent. The adjustment, made by the Monetary Policy Committee, is intended to address inflationary pressures. Reacting to the decision by BOZ, economist Danny Mpasa notes that while the higher MPR will lead to increased borrowing costs from commercial banks, it remains the most effective way to control inflation and stabilize prices. “The increase in the MPR will help keep inflation under control and stabilize prices,” said Mr Mpasa. “Although higher interest rates and reduced borrowing might limit liquidity in the economy, this measure will ease the pressure on the kwacha and provide relief.” He added. Mr Mpasa adds that despite the restricted liquidity in the economy, […]
Monetary policy rate to stabilize commodity prices
