Zambia Interest Rate

The Central Bank of Zambia left its benchmark interest rate unchanged at 14.5% during its regular meeting on August 13th, 2025, marking the second consecutive hold. Policymakers noted that inflation has been trending downward since the last meeting but remains above the 6–8% target, while uncertainties around trade policies and ongoing geopolitical tensions persist. Zambia's annual inflation rate decelerated for the third month to 13% in July 2025, reaching the lowest level since November 2023. It is expected to continue its downward trend over the next eight quarters, reaching the target band by Q1 2026—earlier than May 2025 projections. The updated forecast sees inflation at 13.3% in 2025 and 7.7% in 2026, stable into mid-2027, reflecting exchange rate gains, lower commodity prices, and policy measures.