Zambia raises interest rate to 14%

Zambia raised its benchmark interest rate to 14 per cent on Wednesday as inflation continues to surpass the Bank of Zambia’s target range of 6-8 per cent.

The central bank cited persistent inflationary pressures as the primary reason for the hike, which comes amid projections for inflation to remain elevated.

Inflation is expected to stay at 15.0 per cent throughout 2024, with the 2025 projection revised upwards to 13.9 per cent, higher than the 12.7 per cent previously forecast in August. Furthermore, although inflation is anticipated to decline to 9.0 per cent during the first three quarters of 2026, it will still remain outside the central bank’s target band of 6-8 per cent.

Attribution: Bank of Zambia statement

Subediting: M. S. Salama