THE Bank of Zambia (BoZ) has reduced the Monetary Policy Rate by 250 basis points to 10.75 percent, citing a favourable inflation outlook and the need to support lower financing costs and economic growth. BoZ Governor Denny Kalyalya said the decision was made at the Monetary Policy Committee meeting held on September 28 and 29, […]

THE Bank of Zambia (BoZ) has reduced the Monetary Policy Rate by 250 basis points to 10.75 percent, citing a favourable inflation outlook and the need to support lower financing costs and economic growth.

BoZ Governor Denny Kalyalya said the decision was made at the Monetary Policy Committee meeting held on September 28 and 29, 2026.

Speaking during a third quarter media briefing today, Dr Kalyalya said the reduction is intended to align monetary policy with the improved inflation outlook while supporting lower cost of finance for the broader economy and economic growth.

Dr Kalyalya noted that future policy-rate decisions will continue to be guided by inflation outcomes, forecasts and identified risks, including financial stability risks.

He also disclosed that inflation declined from 7.1 percent in March to 6.5 percent in June, 2026, before falling further to 6.1 percent in September, 2026, thereby remaining within the Bank’s 6 to 8 percent target band.

“Lower maize prices followed a record 4.9 million metric tonne maize harvest during the 2025/26 farming season, while the Kwacha’s appreciation was largely driven by higher export earnings, particularly from the mining sector and improved foreign exchange liquidity,” he added.

Meanwhile, BoZ Deputy Governor for Operations Francis Chipimo, disclosed that BoZ will soon launch a K5 billion Small Business Growth Initiative, aimed at giving credit to small businesses.