Zambia’s Central bank cut its benchmark lending rate by a bigger-than-expected 75 basis points to 13.50% on Wednesday, saying inflation was projected to fall faster than it predicted at its last meeting in November.
The median forecast in a Reuters poll of economists was for a 25-basis-point cut.
Wednesday’s policy announcement was the second rate cut in a row.
Annual inflation fell to 9.4% in January, down from 11.2% the previous month, but it was still above the central bank’s target band of 6%-8%.
The copper-rich Southern African country had been trying to stabilise its public finances, though a debt-restructuring process has moved slower than planned.
–Reuters–
