The Central Bank of Zambia held its benchmark interest rate steady at 11.5% during its February 2020 meeting, citing inflationary pressures and weak growth. Policymakers noted that headline inflation peaked to 12.5% in January, following the upward adjustment in electricity tariffs and fuel pump prices coupled with rising maize prices. It is projected to remain elevated over the earlier part of two-year forecast period and thereafter fall towards the upper-bound of the target range of 6-8% as food supply improves. The GDP growth is estimated to have slowed to 2% in 2019 from 4% in 2018, amid contractions in mining, electricity, cement output and manufacturing. Still, the bank expects it to quicken to 3% in 2020 and 3.7% in 2021, assuming recovery in the agriculture, electricity and mining sectors. Finally, the Committee voiced concerns about the slow pace of fiscal consolidation and urged to accelerate its implementation along with structural measures to curb debt.

Interest Rate in Zambia averaged 10.36 percent from 2012 until 2020, reaching an all time high of 15.50 percent in November of 2015 and a record low of 9 percent in May of 2012. This page provides - Zambia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. source: Bank of Zambia

Interest Rate in Zambia is expected to be 11.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Zambia to stand at 13.50 in 12 months time. In the long-term, the Zambia Interest Rate is projected to trend around 13.50 percent in 2021 and 12.50 percent in 2022, according to our econometric models.


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Zambia Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
11.50 11.50 15.50 9.00 2012 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2019-05-22 09:40 AM 10.25% 9.75% 9.75%
2019-08-21 10:05 AM 10.25% 10.25% 10.25%
2019-11-20 09:50 AM 11.50% 10.25% 10.75%
2020-02-19 10:00 AM 11.5% 11.5% 11.5%
2020-05-20 09:00 AM 11.5% 12.5%
2020-08-19 09:00 AM 12.5%
2020-11-18 09:00 AM 12.5%


News Stream
Zambia Leaves Key Interest Rate Unchanged at 11.5%
The Central Bank of Zambia held its benchmark interest rate steady at 11.5% during its February 2020 meeting, citing inflationary pressures and weak growth. Policymakers noted that headline inflation peaked to 12.5% in January, following the upward adjustment in electricity tariffs and fuel pump prices coupled with rising maize prices. It is projected to remain elevated over the earlier part of two-year forecast period and thereafter fall towards the upper-bound of the target range of 6-8% as food supply improves. The GDP growth is estimated to have slowed to 2% in 2019 from 4% in 2018, amid contractions in mining, electricity, cement output and manufacturing. Still, the bank expects it to quicken to 3% in 2020 and 3.7% in 2021, assuming recovery in the agriculture, electricity and mining sectors. Finally, the Committee voiced concerns about the slow pace of fiscal consolidation and urged to accelerate its implementation along with structural measures to curb debt.
2020-02-19
Zambia Hikes Key Interest Rate to 11.5%
The Central Bank of Zambia raised its benchmark interest rate by 125 bps to 11.5% during its November meeting, saying that the decision aims to curb inflationary pressures and bring inflation back to the target range to restore macroeconomic stability. Policymakers noted that some upside risks to inflation have begun to materialise, including persistent high food prices, electricity disruptions, slow fiscal consolidation and high debt. In October, annual inflation hit a 3-year high of 10.7%, mainly influenced by drought; and it is projected to remain above the upper band of 6-8% until Q3 2021. Also, the GDP growth is expected to decline sharply to 2% in 2019 from 4% in 2018, amid lower agricultural and mining output and constrained electricity supply. The bank stressed that monetary policy needs to be complemented by corrective fiscal and structural policy measures; adding that it would further lift policy rate if inflation persistently remains above the target.
2019-11-20
Zambia Holds Key Interest Rate at 10.25%
The Central Bank of Zambia left its benchmark interest rate unchanged at 10.25 percent at its August 21st 2019 meeting, to counter inflationary pressures and support growth. In July, headline inflation picked up to a near 3-year high of 8.8% mostly due to higher cost of food and it is projected to remain above the upper bound of the target range of 6-8% until Q2 2021, but to revert to the target towards the end of the period. Policymakers voiced concerns about the further weakening of near-term growth prospects, liquidity challenges and risks to financial stability amid persistent fiscal deficits and elevated debt. The real GDP is expected to decline in 2019 mainly due to the effects of drought in agriculture, constrained electricity generation and lower than anticipated mining output. Finally, the bank hinted that may adjust policy rate upward, if inflation does not revert to the target range.
2019-08-21
Zambia Hikes Key Rate by 50 Bps to 10.25%
The Central Bank of Zambia raised the benchmark interest rate by 50 bps to 10.25% at its May 22nd 2019 meeting. The decision came as some upside risks to inflation have begun to materialise, including lower maize output, continued elevated fiscal deficits, high debt service payments and the decline in gross international reserves, which are also exerting severe pressure on the exchange rate. In April 2019, headline inflation rate increased to 7.7% from 7.5% in the prior month and it is projected to rise above the upper bound of the target range of 6-8% over the next year. Policymakers added that indicators of economic activity point to subdued economic growth; the real GDP is expected to slow down in 2019, reflecting lower agriculture production and mining output as well as electricity generation constraints.
2019-05-22

Zambia Interest Rate
In Zambia, interest rates decisions are taken by the Monetary Committee of the Bank of Zambia. The official rate is the policy rate.