The Central Bank of Zambia raised its benchmark interest rate by 150 bps to 12.5% during its regular meeting on February 14th 2024, following a 100bps hike in November. This marks the fifth consecutive interest rate hike in the current year, the largest in almost seven years, aimed at curbing elevated inflation and bolstering the ailing currency. The annual inflation rate in Zambia continued to climb for the seventh month to hit a near two-year high of 13.2% in January 2024, up from 13.1% in December. Governor Denny Kalyalya attributed this to the kwacha's continued decline against major currencies, as well as rising food and fuel prices. To stabilize the kwacha, authorities have implemented other measures like requiring exporters to keep their earnings in Zambian accounts and instructing banks to transfer government deposits to the central bank's Treasury account. Additionally, the Bank of Zambia this month increased the reserve-ratio requirement for lenders to 26% from 17%. source: Bank of Zambia
The benchmark interest rate in Zambia was last recorded at 12.50 percent. Interest Rate in Zambia averaged 15.23 percent from 2001 until 2024, reaching an all time high of 68.40 percent in March of 2001 and a record low of 3.90 percent in April of 2010. This page provides - Zambia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Zambia Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on March of 2024.
The benchmark interest rate in Zambia was last recorded at 12.50 percent. Interest Rate in Zambia is expected to be 12.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Zambia Interest Rate is projected to trend around 10.00 percent in 2025 and 9.25 percent in 2026, according to our econometric models.
Zambia Interest Rate
In Zambia, interest rates decisions are taken by the Monetary Committee of the Bank of Zambia. The official rate is the policy rate.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 12.50 | 11.00 | 68.40 | 3.90 | 2001 - 2024 | percent | Daily |
News Stream
Zambia Hikes Key Interest Rate to 12.5%
The Central Bank of Zambia raised its benchmark interest rate by 150 bps to 12.5% during its regular meeting on February 14th 2024, following a 100bps hike in November. This marks the fifth consecutive interest rate hike in the current year, the largest in almost seven years, aimed at curbing elevated inflation and bolstering the ailing currency. The annual inflation rate in Zambia continued to climb for the seventh month to hit a near two-year high of 13.2% in January 2024, up from 13.1% in December. Governor Denny Kalyalya attributed this to the kwacha's continued decline against major currencies, as well as rising food and fuel prices. To stabilize the kwacha, authorities have implemented other measures like requiring exporters to keep their earnings in Zambian accounts and instructing banks to transfer government deposits to the central bank's Treasury account. Additionally, the Bank of Zambia this month increased the reserve-ratio requirement for lenders to 26% from 17%.
2024-02-14
Zambia Raises Key Interest Rate to 11%
The Central Bank of Zambia lifted its key interest rate by 100 bps to 11% at its regular meeting on November 22nd 2023, after raising it by 50 bps in August. This marks the fourth consecutive interest rate hike in the current year and the biggest since November 2009, aiming to support the currency and steer inflation back into the 6-8% target range to ensure broader macroeconomic stability. The headline inflation rate in Zambia rose for the fourth straight month to 12.6% in October 2023, the highest since March 2022, up from September's 12%, largely due to the ongoing depreciation of the kwacha. The central bank said that inflationary pressures were expected to intensify over the period covering the fourth quarter of 2023 to the third quarter of 2025. Inflation is projected to average 10.9%, 11.4% and 9.6% in 2023, 2024 and 2025, respectively, compared to 10.2% in 2023 and 9.3% in both 2024 and 2024 reported in August.
2023-11-22
Zambia Hikes Key Interest Rate to 10%
The Central Bank of Zambia raised its key interest rate by 50 bps to 10% at its meeting on August 23rd 2023, after lifting it by 25 bps in May. It was the third successive rate hike in the current year, pushing borrowing costs to their highest point since April 2020, as inflation had moved even further above the central bank's target of 6% to 6% and was anticipated to remain elevated. The headline inflation rate in Zambia accelerated to 10.3% in July 2023, the highest since April 2022, up from 9.8% in June, and it is expected to average 10.2% in 2023 and 9.3% in 2024 and the first half of 2025. Policymakers said that elevated maize grain prices and tight global financial conditions are the main factors of the current inflation outlook, alongside higher global food and energy prices due to the prolonged war in Ukraine. Regarding domestic activity, GDP growth is expected to decrease in 2023 due to ongoing contraction in the mining sector, but a recovery is foreseen in the medium-term.
2023-08-23
