The Bank of Zambia has reduced the Monetary Policy Rate by 0.25 percentage points, bringing it down from 14.5 percent to 14.25 percent for the fourth quarter of 2025.
This is the first rate cut in five years, with the last reduction made in August 2020 when the rate dropped from 9.25 to 8.0 percent.
Bank of Zambia Governor Dr. Danny Kalyalya says the decision follows a steady decline in inflation, which eased from above 16 percent earlier this year to 11.9 percent in October.
Dr. Kalyalya adds that the move is aimed at supporting economic activity while maintaining price stability.
By Prudence Chota
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