Zambia’s central bank raised its key interest rate by 25 bps to 9.25%, citing a deceleration in the inflation outlook. The country’s inflation rate dropped to 9.4% in January but remains above the bank’s 6%-8% target range. The bank noted that updated forecasts show a build-up in inflationary pressures, with inflation expected to stay above the target band till Q4 2024, mainly driven by the recent Kwacha depreciation, anticipated increase in electricity tariffs, and a reduction in maize output.