Zambia’s central bank increased its benchmark interest rate by 150 bps to 12.5%, marking the fifth consecutive hike within a year and the largest in nearly seven years. This decision aims to address the persistent inflation and support the kwacha. Zambia’s inflation reached a near-two-year high of 13.2% YoY in January. The bank has also raised the reserve ratio requirement for lenders to 26% and implemented measures to stabilize the kwacha.