The Bank of Zambia has lowered its key interest rate by 25 basis points, from 13.5% to 13.25%, following the Monetary Policy Committee meeting held on May 11 and 12, 2026. The decision was based on the stability of the kwacha, favorable maize harvest prospects and uncertainties linked to the conflict in the Middle East. The institution welcomed the decline in inflation, which fell from 11.2% in December 2025 to 6.8% in April 2026, now within the target range of 6% to 8%. The MPC forecasts average inflation of 6.8% for 2026, supported by a promising agricultural season.
