ECONOMIST Oliver Saasa says Zambia cannot correct its fiscal problem by only using the Central Bank’s monetary instrument. And Professor Saasa says the increase in the Monetary Policy Rate (MPR) was expected but his biggest worry is whether the Bank of Zambia (BOZ) will also tamper with the Statutory Reserve Ratio (SRR). On Wednesday, BOZ raised the Monetary Policy Rate by 100 basis points to 13.5 percent from 12.5 percent. Commenting on the increase in an interview, Thursday, Prof Saasa observed that inflation had worsened because the economy was not growing. “I think what many people sometimes also miss, and this is where one perhaps has to come to the defense of the Central Bank or to caution the Central...

This premium content is for paid ePaper subscribers.
Subscribe
Already a member? Log in here