Zambia’s central bank raised its key interest rate by 50 bps to 14% to combat inflation and stabilize the currency. The kwacha has depreciated nearly 3% since October 24, contributing to inflation, near a three-year high of 15.7% due to a severe drought. Inflation is driven by a low supply of corn, fish, and vegetables, as well as increased demand for fuel due to electricity shortages caused by reduced hydroelectric power generation.