High lending rates affecting private sector growth

PRIVATE sector growth has continued to be affected by commercial banks’ resistance to lower lending rates despite the central bank’s intervention.
The Institute of International Finance (IIF) is a global association or trade group of financial institutions created by 38 banks of leading industrialised countries in response to the international debt crisis of the early 1980s.
The Bank of Zambia (BoZ) has put interventions such as lowering of the monetary policy rate in place to enable banks to have sufficient credit lending space to the private sector.
However, commercial bank lending rates have remained relatively high, thereby constraining private sector credit.
According to the IIF statement issued on Friday, weak economic activity and

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