Zambia Holds Key Interest Rate While Warning That Hikes May Come

Zambia’s central bank kept its key interest rate unchanged to boost economic growth, while warning that it could tighten policy if inflation doesn’t return to target, Bloomberg News reported. The Bank of Zambia held the rate at 10.25%, Governor Denny Kalyalya told reporters Wednesday in the capital, Lusaka. That’s after the Monetary Policy Committee bucked the global trend in May by tightening by 50 basis points as inflation was accelerating. That move hit economic growth prospects rather than containing inflation, which accelerated to 8.8% last month, the highest rate in almost three years. Gross domestic product is forecast to expand at 2% this year, according to Bloomberg’s August economic survey, compared with 3.7% in 2018. Read more