Zambia Trims Benchmark Interest Rate to 13.25 Percent

The Bank of Zambia cut its benchmark lending rate by 25 basis points to 13.25%. The move surprised economists polled by Reuters, who expected the central bank to hold rates steady. Inflation has cooled to within the central bank's target range, though geopolitical tensions pose risks ahead.

### Inflation Falls Within Target Range Annual inflation in Zambia fell to 6.8% in April from 7.1% the previous month. This trajectory puts price growth firmly within the central bank's 6% to 8% target range. The Bank of Zambia previously lowered the Monetary Policy Rate by 75 basis points in February.