BoZ policies will stimulate economy – FNB
By BUUMBA CHIMBULU FIRST National Bank (FNB) Zambia has anticipated more stimulated economic recovery following the decision by the Bank of Zambia (BoZ) to inject cheap credit for the private sector by reducing the policy rate and statutory reserve ratio by 75 as well as 150 basis points, respectively.
The central bank last week reduced the policy rate to 10.25 percent from the previous 11.0 percent and statutory reserve ratio to 8.0 percent from 9.5 percent.
FNB Zambia chief executive officer, Leonard Haynes, said the move by the central bank would stimulate growth in the economic recovery.
Mr. Haynes explained that the measures taken by the BoZ would also reduce the cost of credit and increase liquidity in the banking sector as a general economy as a whole.
"We wish to commend the central bank for the recent proactive reduction in the monetary policy rate by 75 basis points to 10.25 percent and the reduction in the statutory reserve ratio by 150 basis points to 8 percent,
"Lowering the interest rates and increasing liquidity in the banking sector will enhance the overall productivity of the economy, particularly in the private sector leading to the creation of more jobs and more wealth for our citizens,” he said.
Mr. Haynes said his bank had reduced interest rates by about 0.75 percent following the policy announcements.
He also said the bank continued to be encouraged by the improving macroeconomic environment as evidenced by reduction in annual inflation rate to 6.6 percent as well as an overall increase in economic activity with a forecasted Gross Domestic Product growth rate of 4.1 percent expected this year.
"For this reason, we at FNB, are positioning ourselves to move with this positive economic trend in order to support business growth by providing our customer with the necessary banking services and financial solutions that will enable the growth of their businesses and their personal finances," Mr. Haynes said.
Meanwhile, the bank’s head of retail banking, Kabanda Lilanda, said FNB Zambia was currently attracting about 20, 000 to 30, 000 new customers on a monthly basis following digitalisation.
"We are trying to win customers on our digital channels. FNB has been seen as the torch beater for digitalisation so because we are constantly using that to go digital, more of our customers use our products," Mr Lilanda said.