By KENNEDY MUPESENI –
AN economist has urged the Bank of Zambia (BoZ) to continue with its monetary policy interventions for the country to re-attain the single digit inflation rate.
The country’s inflation for August has reduced to 19.6 per cent from 20.2 per cent recorded the previous month.
According to the Central Statistical Office (CSO) monthly bulletin, the reduction has been attributed to the decline in the food and non-food prices as the CSO has targeted to achieve single digit inflation rate by December, 2016.
Lubinda Habazoka said the Central bank should continue with monitory policy measures to achieve single digit inflation rate.
“The measures BoZ has been putting in place to reduce the high level of inflation like revising reserve ratios and policy monetary capping among others are helping much in lowering the inflation rate in the country,” Dr Habazoka said.
He, however, said achieving single digit inflation rate by the end of the year would not be possible.
He cautioned the new cabinet against being extravagant.
“Achieving single inflation rate before the end of the year will not be attainable but maybe in the first quarter of 2017 if measures will be put in place to bring down the exchange rate.
“What we expect is fiscal discipline for the new cabinet that will be ushered in so that we cut unnecessary costs and reduce budget deficits,” Dr Habazoka said.
