Bank of Zambia Cuts Interest Rate to 13.25%

The Bank of Zambia has announced a reduction in its benchmark interest rate to 13.25%, down from 13.5%, as part of its monetary policy adjustments amid easing inflation pressures. This decision, announced by Governor Denni Kalyalya on Wednesday in Lusaka, marks the third consecutive rate cut by the central bank.

The Monetary Policy Committee of the Bank of Zambia noted improvements in inflation trends and exchange rate stability, which are expected to favor agricultural harvests and ease borrowing costs. Despite the global uncertainties stemming from conflicts in the Middle East, the central bank aims to support domestic economic conditions through lower borrowing costs.

The inflation rate remains within the target range of 6% to 8%, with expectations of further moderation in the medium term. Zambia joins a small group of countries, including Russia and Guinea, that have reduced borrowing costs in response to global economic pressures.