Zambian Central Bank Rate Hike Amid Rising Inflation

February 17, 2021

The Bank of Zambia raised its reference interest rate by 50 basis points to 8.5%, marking the first increase since November 2019. The rate during 2020 had be cut 225 basis points in May and another 125 bps in August, but Zambian inflation has been above the 6-8% target and increasingly so of late. A released statement explains that the policy rate could be raised additionally “should inflationary pressures persist” in order to anchor inflation expectations while still lending support to financial system stability and Zambian growth.

Copyright 2021, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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