Zambia Real Interest Rate at Six-Year High Makes Case for a Cut

Zambia’s real interest rate is the highest in six years after inflation slowed, providing room for the central bank to cut borrowing costs for the first time since 2020.

The spread between the Bank of Zambia’s policy benchmark and the annual inflation rate widened to 1.5 percentage points in July after price growth eased to an almost two-year low of 13%. The Monetary Policy Committee will announce its next rate decision on Aug. 13.