Zambia rate rise to suppress excess liquidity

The Bank of Zambia's monetary policy committee raised the country's benchmark interest rate by 25 basis points to 9.25% at its October meeting, in response to perceived high inflationary pressures.

The primary inflation concerns centred on excess liquidity in the Zambian economy, rising stock feed prices and a global grain shortage. These factors threatened the country exceeding its end of year inflation target of 7%, the committee members said, and consequently a rate increase was needed to