Zambia Interest Rate

The Central Bank of Zambia kept its benchmark interest rate unchanged at 14.5% during its regular meeting on May 23rd, 2025, after two consecutive hikes of 50 bps in February and November. The annual inflation rate in Zambia stood at 16.5% in April 2025, the softest in four months, yet remained well above the central bank’s 6%–8% target range. Policymakers noted that the balance of risks is still tilted to the downside, with inflation now expected to decline more quickly than projected in February and return to the target range by the first quarter of 2027. The central bank now forecasts average inflation of 13.8% for 2025 and 8.8% for 2026, both revised down from previous estimates of 14.6% and 10.6% issued in February, based on the expected decline in prices of maize grain and crude oil.