Central Banks
Zambia Pauses Key Rate to Support Economy Battered by Drought
- Central bank leaves benchmark interest rate at 13.5%
- Economy seen growing 2.3% this year, compared with 5.8% in ‘23
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Zambia’s central bank held its key interest rate for the first time in almost two years to support its drought-battered economy, and as it felt the current monetary policy stance is appropriate considering that inflation is supply driven.
The monetary policy committee kept the rate at 13.5%, Governor Denny Kalyalya told reporters in the capital, Lusaka, on Wednesday. That matched the projection of two of three economists in a Bloomberg survey. The pause was the first after six straight hikes of a combined 450 basis points.