The Central Bank of Zambia reduced its key policy rate by 25 basis points to 14.25% at its regular meeting on November 12, 2025, implementing its first rate cut since August 2020. The move followed a continued moderation in inflation during the third quarter, as policymakers sought to ease monetary conditions while steering price growth back within the target range. Annual inflation eased to 11.9% in October 2025, the lowest level in over two years, down from 12.% in September. The central bank projected that inflationary pressures will keep moderating in the near term. Policymakers noted, however, that risks linked to external conditions and domestic supply factors remain.