Zambia Interest Rate

The Central Bank of Zambia held its benchmark interest rate steady at 13.5% during its regular meeting on August 14th, saying the current monetary policy stance remains appropriate, despite actual and projected inflation remaining significantly above the 6.8% target range. The decision considered the effects of the drought and the cumulative 450 basis points increase in the policy rate over recent months. Since mid-2023, inflation in Zambia has been rising, reaching 15.4% in July, driven by a depreciating currency and rising food prices amidst persistent drought conditions. Inflation was now forecast to average 15.3% this year, higher than May's estimate of 13.7%, before moderating to 12.7% in 2025, albeit higher than the previous estimate of 9.8%. In the first half of 2026, it is projected to average 10.8%.