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Business and Financial Analyst Blessings Kafwanka
Business and Financial Analyst Blessings Kafwanka is optimistic that the lowering of the Policy Rate and the reduction of the Statutory Reserve Ratio by the Central Bank will have a positive impact on business development in Zambia.
The Bank of Zambia has lowered the Policy Rate by 75 basis points to 10.25 percent from 11% and reduced the Statutory Reserve Ratio by 150 basis points to 8.0% from 9.5%.
Mr. Kafwanka tells QTV Business News that he expects commercial banks and other financial institutions to effect the corresponding reduction in terms of lending rates.
He says it’s also expected that Small and Medium Entrepreneurs (SMEs) will borrow more for the expansion of their businesses and further invest in other businesses because lending rates are expected to reduce.
Mr. Kafwanka has however, noted that the expected reduction in terms of interest rates will be marginal.