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Zambia Central Bank Hikes Rate to Fight Surging Inflation

  • Central bank increased key interest rate to 8.5% from 8%
  • Zambia the second country to tighthen policy this year
Updated on

Zambia became the second country in the world to increase its benchmark interest rate this year as it seeks to bring down “spiraling” inflation that’s at a five-year high.

The monetary policy committee lifted the rate to 8.5% from 8%, Governor Christopher Mvunga told reporters Wednesday in Lusaka, the capital. That is the first increase since November 2019 and follows tightening by its eastern neighbor, Mozambique, last month.