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.