EAZ ex- boss Lubinda Haabazoka questions BoZ maintaining Zambia’s lending Policy Rate @9 percent
Wednesday, November 23rd, 2022
FORMER Economics Association of Zambia (EAZ) President Lubinda Haabazoka has ascertained that there will be NO effect by the decision of the Bank of Zambia -BoZ- to maintain, Zambia’s lending benchmark, the Policy Rate, at 9 percent.
Dr. Haabazoka seems to support the Central Bank’s position that the Policy Rate is NOT something that should be changed every quarter.
Dr. Haabazoka explains that this is because businesses, in any economy, plan and the stable the price is, the better.
Dr. Haabazoka states that maintaining the Policy Rate at 9 percent is thus very good for business money.
Dr. Haabazoka has emphasized that it is therefore NOT all the time that Government should react by changing rates.
The former EAZ president says stability for businesses is very important.
Dr. Haabazoka has, meanwhile, argued that there is currently NO need to panic as to whether or not the Zambian government has so far impressed the International Monetary Fund (IMF) in meeting the set out financial bailout conditions.
Dr. Haabazoka has explained that it takes time for such financial bailouts to come to run their course.
Dr. Haabazoka says the recently obtained IMF bailout should be given time to run its course.