FX.co ★ Central Bank of Zambia Trims Policy Rate for 4th Time

The Central Bank of Zambia cut its key policy rate by 250 basis points to 10.75% at its September 30, 2026 meeting, marking a fourth consecutive reduction. The decision was underpinned by a sustained disinflationary trend that has been in place since early 2025. Annual inflation eased further to 6.1% in September—its lowest reading since February 2018—down slightly from 6.2% in August and moving closer to the lower bound of the central bank’s target range. Price pressures have been contained by the suspension of fuel taxes, the application of a zero-rated value-added tax, and the resilience of the Zambian currency.