BoZ urged to consider further reducing statutory reserve ratio

Economist Chibamba Kanyama has called on the Bank of Zambia to consider reducing further the statutory reserve ratio to about 11.5 percent in order to spur economic growth in the country.

Mr Kanyama has told Q business news that the recent reduction of the statutory reserve ratio from 15 percent to 12.5 percent is not sufficient.

He adds that the minister of finance will do well to ensure monetary tightening is further relaxed on liquidity.

Mr Kanyama says government should come to terms that there is need for increased economic activity in order to realise economic growth.

He notes that commercial banks are still lending higher than what was initially anticipated when the statutory reserve ratio was reduced to 12.5 percent, hence the need to ensure they do more.