BOZ HANDLING OF ECONOMY NOT GIVING CONFIDENCE OF POSSIBLE SOLUTION TO ZAMBIA'S ECONOMIC CHALLENGES

 

Economist Naylor Kopakopa has charged that the manner in which the Bank of Zambia is handling the economy does not give confidence of a possible solution to the ongoing challenges the country is experiencing.

Mr. Kopakopa in an interview with Phoenix News explains that the tools being used by the central bank, such as the Statutory Reserve Ratio and monetary policy rate are limited and not the right mechanisms to correct the current economic situation.

He says the Bank of Zambia wants to be seen to be doing something amidst the current chaos in the economy, stating that it is also wrong to attribute the high rate of inflation to too much money in circulation.

Mr. Kopakopa states that the present high inflation rate is influenced by the exchange rate and is of the view that raising the monetary policy rate is not deterrent enough for people to borrow.

The Bank of Zambia has raised the Monetary Policy Rate by 150 basis points to 12.5% from the previous 11% in order to steer inflation toward the target band and anchor inflation expectations.

By Chileshe Mwango

PHOENIX NEWS