RBM DOWNPLAYS CAMPAIGN INFLATION PRESSURE

Authorities have downplayed threats that the politicians’ cash
splashing campaign may orchestrate inflation-rise in the run up to the
May 20 tripartite elections.

Recently, economic expert Mavuto Bamusi advised monetary authorities
to control cash circulation during the on-going campaign period,
saying failure to do so would lead to the rise in the decelerating
inflation indicator.

Currently, Inflation is pegged at 24% according to National
Statistical Office – decreasing from over 26% registered in January.

Bamusi however, observed that if the situation goes unchecked,
inflation may start rising again as the cash splashing campaign may
create some pressure on commodity prices.

However speaking in an interview, Reserve Bank’s spokesperson Mbane
Ngwira downplayed Bamusi’s warning saying his institution has put in
place measures to curb inflation rise.

Ngwira also said the elections’ budget was a special funding from
international community and it cannot impact government’s activities.

“We do not think that the said threat really exist as the impact it
may cause could be very insignificant in our opinion.

“And on our part, we are also been doing a mopping exercise on excess
liquidity and that process also could rightly check those cases it at
all may arise.” Ngwira said.

Ngwira therefore, said this is unlikely going to have any impact on
the monetary perspective.