Zambia's central bank has reduced its main interest rate by 25 basis points to 13.25%, marking the third consecutive cut, as inflation remains within target despite external risks from the Iran war. The bank's governor cited a favorable maize harvest and stable kwacha exchange rate as factors influencing this decision.
Zambia's central bank has cut its main interest rate to 13.25%, marking the third consecutive reduction, despite inflation remaining within the target range and ongoing geopolitical tensions linked to the U.S.-Israeli conflict with Iran. This decision, influenced by a favorable maize harvest and stable kwacha exchange rate, suggests a strategic move to support economic resilience amidst global uncertainties, offering an insight into how emerging markets might navigate similar challenges.