Prof and Economist Lubinda Haabazoka says Zambia’s latest monetary policy easing could mark a turning point in the nation’s recovery.
He remarked that the reduction of the Monetary Policy Rate to 13.5 percent reflects confidence in stabilisation efforts and a sustainable decline in inflation.
Prof Haabazoka explained that households stand to benefit from lower borrowing costs, while businesses may find renewed opportunities for investment and expansion.
In a statement, he stressed that fiscal discipline remains the cornerstone of public financial management success.
He observed that inflation is projected to fall into the 6–8 percent target band by mid‑2026, creating space for growth.
Prof Haabazoka highlighted that exchange rate stability and strong agricultural output are vital to sustaining momentum.
He pointed out that commercial banks must transmit the rate cut effectively to ensure households and firms feel the impact.
The Prof underlined that capital‑intensive sectors such as manufacturing and construction could gain significantly from cheaper credit.
In a declaration, he emphasised that structural reforms and diversification are essential for long‑term resilience.
He noted that Zambia’s economy now faces three possible scenarios, ranging from accelerated growth to renewed inflationary pressures.
Prof Haabazoka stated that the rate cut signals a transition from stabilisation toward expansion.
He said Zambia must seize this window to strengthen productive sectors and build resilience against future shocks.
