Zambia: Central Bank cuts policy rate by 75 bps to 13.5% in second consecutive moveZambia’s central bank surprised markets by cutting its policy rate by 75 basis points to 13.50%, marking a second consecutive reduction and a larger move than analysts had anticipated. Inflation eased sharply at the start of the year, falling below 10% in January. This strengthens expectations that inflation could return to the central bank’s official 6% - 8% target range as early as the second quarter. Looking ahead, the central bank has revised its inflation forecasts downward, now expecting average inflation to fall below 7% in 2026, followed by further moderation in 2027. This marks a potential turning point after several years of persistently high inflation amid a prolonged debt crisis.

Source: The North Africa Journal February 12, 2026 03:40 UTC