Zambia’s inflation fell to 15.3% YoY in July, the lowest since 2023, driven by easing food prices and a 21% appreciation of the Kwacha YTD. The slowdown in inflation and strong real yields have fueled expectations of a rate cut from the current 14.5% at the next MPC meeting. However, the World Bank warned that Zambia has yet to meet conditions for a second DPO loan, including regulations for the Conflict of Interest and Social Protection Acts. Delays in reform have raised risks to concessional funding access.