Zambia raises lending rate to halt inflation surge

LUSAKA, Xinhua - Zambia's central bank on Wednesday raised its key lending rate by 100 basis points to 13.5 percent in an effort to contain the inflation rate, which has continued to surge up.

Denny Kalyalya, the governor of Bank of Zambia, said the continued movement of inflation away from the target band of 6-8 percent if left unchecked was poised to undermine macroeconomic stability and efforts towards robust and sustained growth.

He said in a statement that average inflation rose to 13.5 percent during the first quarter of 2024, adding that the continued depreciation of the local currency, rising price of maize grain and fuel as well as prolonged tight global financial conditions remain key upside risks to the inflation outlook.