Zambia Cuts Policy Rate to 13.5 Percent As Inflation Falls Below 10 Percent

Zambia’s central bank lowered its policy rate by 75 basis points to 13.50%, marking a second consecutive cut and a larger move than analysts expected.

The decision reflects easing inflationary pressure at the start of the year. Annual inflation fell below 10% in January, raising expectations that it could return to the official 6% to 8% target range in the second quarter.

Policymakers cited appreciation of the kwacha and foreign-currency inflows from the mining sector as key drivers of the…