By Sharon Siame
The Bank of Zambia (BOZ) has reduced the Monetary Policy Rate to 13.5 percent.
Governor Dr. Denny Kalyalya said the decision was influenced by a further decline in inflation in the fourth quarter of 2025 and the need to maintain an appropriate monetary policy stance.
Speaking at a press briefing in Lusaka today, Dr. Kalyalya noted that inflation slowed to 11.2 percent in December 2025 from 12.3 percent in September 2025. He attributed the reduction to the bumper maize harvest and the appreciation of the kwacha against major currencies.
Dr. Kalyalya said the outlook for inflation remains positive, predicting that it will fall into the 6–8 percent target band by the second quarter of 2026.
He added that the kwacha appreciated by 4.1 percent in the fourth quarter of 2025 and continued to strengthen in January 2026, driven by positive market sentiments, rating upgrades, the IMF staff-level agreement, and increased foreign exchange supply from the mining sector.
