The Bank of Zambia has cut its benchmark policy rate by 25 basis points to 10.0%, citing easing inflationary pressures and the need to support economic growth amid improving market conditions.
Governor Denny Kalyalya announced the decision on Friday following the central bank’s Monetary Policy Committee (MPC) meeting, noting that inflation is projected to remain within the target range of 6–8% over the medium term. “This adjustment reflects our confidence in the sustained decline of inflation and the resilience of the economy,” Kalyalya said during a press briefing in Lusaka.
The decision comes as Zambia continues to benefit from improved copper prices and stronger agricultural output, which have helped stabilize the kwacha. According to Bloomberg, inflation fell to 8.4% in September, the lowest level since early 2023, while foreign reserves have also risen following recent debt restructuring progress.
Analysts say the rate cut could ease borrowing costs for businesses and households, providing a modest boost to credit growth. However, the central bank reiterated its readiness to adjust policy further should inflation risks reemerge, particularly from fuel and food prices.
