The Bank of Zambia cut its benchmark policy rate by 75 basis points to 13.5% at its meeting on February 11, 2026, marking a second consecutive reduction. Annual inflation slowed sharply to 9.4% in January 2026, down from 11.2% in December. Governor Denny Kalyalya noted that consumer prices are now expected to decline more quickly than projected in November, bringing inflation closer to the central bank’s 6–8% target range.
The decision comes as Zambia works to stabilize its public finances amid a debt-restructuring process that is progressing more slowly than planned. The rate cut is aimed at lowering borrowing costs, supporting growth in domestic credit, and strengthening investor confidence. Gains in the kwacha have been underpinned by tighter controls on foreign-exchange transactions and higher copper prices.
