Centre for Trade Policy and Development (CTPD) says the Bank of Zambia should realize that adjustments to the Monetary Policy Rate alone will not be adequate to arrest the rising inflation, even as they announce the Monetary Policy Rate tomorrow.
Over the past 19 months, Zambia’s Inflation has maintained an upward trajectory, recording a 15.4 percent in July 2024.
CTPD Public Finance Researcher, Elijah Mumba, has therefore called for a holistic approach to curb rising inflation amidst slowing economic growth in Zambia.
Mr. Mumba said targeted interventions will be important to complement monetary measures in addressing the underlying causes, to be able to effectively draw inflation towards the BOZ’s medium target of 6 to 8 percent.
He said in a statement issued to RCV News in Lusaka today that the inflation drivers are largely supply-side, particularly food-related.
“In addition, to reduce food inflation, the government must continue to support agricultural efforts including the provision of small loans to farmers as well as setting conduce environment for commercial farming to aid early produce of maize and other crops,” said Mr. Mumba.
Mr. Mumba also said measures that target reducing the exchange rate will be critical in reducing the inflation rate.
“Additionally, the slowed economic growth entails a need to expand economic activity, “ said Mr. Mumba.
By Eva Hatontola
