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Zambia’s Central Bank Escalates Fight Against Inflation with Sharp Rate Hike

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  • Central bank lifts rate to 12.5%, targeting inflation control and kwacha support.
  • Inflation surge and kwacha’s fall prompt aggressive monetary tightening.

 

To tackle rising inflation and bolster its currency, the Bank of Zambia announced on Wednesday that it has raised its key interest rate by 150 basis points, setting it at 12.5%. This hike is the latest in a series of increases, marking the fifth consecutive adjustment and pushing the policy rate to its peak in almost seven years.

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