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Zambia's Central Bank Lowers Policy Rate By 75 bps To 13.5% As Sees Inflation Lower

BY MT Newswires | ECONOMIC | 02/11/26 10:08 AM EST

10:08 AM EST, 02/11/2026 (MT Newswires) -- Zambia's central bank (BoZ) Wednesday said its Monetary Policy Committee (MPC) decided to reduce the Monetary Policy Rate by 75 basis points to 13.5%.

The MPC took into account the further decline in inflation in Q4 2025, the projected faster fall of inflation into the 6%-8% target band than was forecast in November 2025, and the need to maintain an appropriate monetary policy stance, noted BoZ.

Inflation continued to decelerate in Q4 2025, with overall inflation declining to 11.2% in December 2025 from 12.3% in September 2025.

In January 2026, inflation fell sharply to 9.4%. The decline in inflation has largely been driven by the continued impact of the maize bumper harvest from the 2024/25 farming season and the appreciation of the Kwacha (ZMW) against major currencies, wrote the central bank in its policy statement.

On average, inflation is forecast to be 6.9% this year compared with 7.6% projected in November 2025. It is expected to ease further to 6.3% in 2027, added BoZ.

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