Economic Analyst, Yusuf Dodia, says the increase in the Monetary Policy Rate (MPR) by the Bank of Zambia (BoZ) from 13.5% to 14%, will increase the cost of doing business in the country.
Yesterday, (BoZ) increased the (MPR) from 13.5% to 14.% due to the continued increase in the actual and projected inflation, away from the targeted 6 to 8% band.
But speaking in an interview with RCV News in Lusaka today, Mr. Dodia said the increase in the MPR will increase the cost at which business entities obtain loans from the banks.
“Businesses will be forced to pay more to service or repay the loans and they will pass on this burden to consumers who pay for the final product,” said Mr. Dodia.
He said it is imminent that the prices of goods and services on the market will increase and affect citizens who are already affected by high fuel prices and impacts of the drought.
Angel Kasabo
