Various stakeholders have appealed to Commercial Banks to reduce their interest rates in view of Government’s decision to reduce the policy rate and the statutory reserve ratio.
Last week the Bank of Zambia reduced the policy rate from 12.5 percent to 11 percent and further reduced the statutory reserve ratio from 12.5 to 9.5 percent.
Bankers Association of Zambia Chief Executive Officer Leonard Mwanza says his association expects Commercial Banks to reciprocate Government’s move of reducing the policy rate by also reducing their interest rates.
Mr. Mwanza says the Central Bank’s move will help Commercial Banks have sufficient funds which they should in turn lend to their customers.
And Micro-Finance Chief Executive Mubanga Mwiko says reduced policy rate will help a lot of people because lending will become cheaper.
Mr. Mwiko is optimistic that reduction in policy rate and Bank interest rates will continue in view of the prevailing favourable economic conditions.
Meanwhile, Basic Education Teachers Union of Zambia General Secretary Jeffry Simuntala says education in the policy rate is positive as it will benefit a lot of Teachers who have had challenges in borrowing from Commercial Banks.
Mr. Simuntala has also appealed to Commercial Banks to reduce their interest rates in conformity with reduced policy rates.