Africa Banking Economy Finance Governance Zambia

Bank of Zambia cuts main lending rate by 125 bps to 8.0%

Zambia’s central bank cut its benchmark lending rate by 125 basis points to 8.0% to safeguard financial sector stability and protect livelihoods in the wake of the COVID-19 pandemic, it said in a statement on Wednesday.

The bank added that inflation was expected to steadily decline and reach the upper bound of its 6%-8% target range by the end of its forecast horizon.

It now expects gross domestic product to contract 4.2% this year, more than an earlier forecast for a contraction of 2.6%.

Also read: Nigeria’s Access Bank buys loss-making Zambian Cavmont

Source: Reuters

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