Zambia Cuts Interest Rate to 13.5% Amid Inflation Slowdown

The Bank of Zambia has announced a second consecutive interest rate cut to 13.5% as inflation in the country shows signs of moderation. The decision was made during a Monetary Policy Committee (MPC) meeting led by Governor Denni Kalyalya in Lusaka.

The rate cut reflects growing confidence among policymakers, with inflationary pressures easing faster than previously projected. The committee expects inflation to return to the bank's 6-8% target band sooner than expected, attributing this to improved fiscal discipline, steady foreign exchange reserves, and higher global copper prices.

The move is part of efforts to stabilize prices, restore currency confidence, and support the mining sector's expansion amid ongoing debt restructuring efforts.