Monitory policy rate reduction to impact businesses negatively – EPCCI
By Staff Reporter
The Eastern Province Chamber of Commerce and Industry (EPCCI) says the reduction in the monetary policy rate by the Central Bank will affect the business sector negatively.
In an interview this morning, chief executive officer Noah Banda said banks would suffer the most over loans they had given out.
“The monetary policy rate is a key determinant of interest rates, businesses that will be negatively affected will be mainly banks that gave out loans at high interest rate as they will have to reduce, which will affect their profit margin,” said Banda.
“Because of the reduction in the monetary policy rate, most individuals and businesses that borrowed money from different banks will pay less than they were originally supposed to. All this combined with the reduction in the inflation rate in the country creates an enabling economic atmosphere for businesses to thrive, thereby improving the Zambian economy.”
