By Kingsley Jassi:
As news spread about the Monetary Policy Committee (MPC) decision to reduce the policy rate by 200 basis points to 24 percent, Mike Chikopa was packing his watermelons, visibly worried.
He had sold only one fruit the whole day for K15,000. When asked whether he knew about the MPC decision, he had no idea and, more interestingly, could not understand its significance.
At 26 percent, the policy rate had driven bank lending rates as high as 37 percent, discouraging borrowing and ultimately reducing the money supply.
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