FX.co ★ Zambia Lowers Key Policy Rate to 14.25%

The Central Bank of Zambia, during its scheduled meeting on November 12, 2025, announced a reduction in its key policy rate by 25 basis points, bringing it to 14.25%. This marks the first rate decrease since August 2020. This decision was driven by a continual decrease in inflation throughout the third quarter, as the authorities aimed to relax monetary conditions to guide price growth back within the targeted range. Notably, annual inflation fell to 11.9% in October 2025—the lowest it has been in over two years—from 12% in September. The central bank anticipates a further reduction in inflationary pressures in the short term. Nonetheless, policymakers acknowledged ongoing risks associated with external conditions and domestic supply factors.