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Zambia's central bank cuts interest rates to 13.5% as inflation drops, aiming for 6%-8% target by mid-2026.
Zambia’s central bank cut its policy rate by 75 basis points to 13.50%, the second consecutive reduction, after inflation fell to 9.4% in January from 11.2% in December.
The move exceeded expectations and was driven by a stronger kwacha and increased foreign-exchange inflows, particularly from mining.
The central bank projects inflation will reach its 6%-8% target range by mid-2026, with annual inflation expected to average 6.9% in 2026 and ease further in 2027.
The government has requested a new IMF program and aims to reach a staff-level agreement by May.
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El banco central de Zambia reduce las tasas de interés al 13.5% a medida que disminuye la inflación, apuntando a un objetivo de 6%-8% para mediados de 2026.