In short: On 30 September 2026 the Bank of Zambia cut its Monetary Policy Rate by 2.5 percentage points, from 13.25% to 10.75%. It was the fourth cut in a row. Annual inflation fell to 6.1% in September, the lowest since February 2018 and inside the Bank’s 6–8% target band.
Why the Bank of Zambia cut the rate
The Bank said prices have been slowing steadily since early 2025. Lower fuel taxes, zero-rated VAT on some items and a steadier kwacha all helped. With inflation near the bottom of the target band, the Bank had room to make borrowing cheaper.
New to the policy rate? Read our explainer: What is the Monetary Policy Rate (MPR) in Zambia?
What it means for your money
If you have a loan
Bank lending rates usually follow the policy rate, but not straight away and not always by the same amount. Ask your bank whether your loan rate is variable and when it will be reviewed.
If you keep money in savings or fixed deposits
Savings and fixed-deposit rates tend to come down after a cut. Check what your bank now offers before you roll over a fixed deposit.
If you buy Treasury bills or GRZ bonds
Yields at government securities auctions often fall when the policy rate falls. That means new money may earn less than it did a few months ago. If you already hold bonds bought at higher yields, their market price may rise. Use our GRZ bond calculator to see what a bond would cost and pay at today’s yields, and check the upcoming auction dates.
If you hold unit trusts
Returns on money market funds usually drift lower as short-term rates fall. Bond funds may gain in price. Read the latest fund fact sheet to see what your fund holds: how to read a unit trust fact sheet.
If you invest in shares
Lower interest rates can support share prices, because borrowing is cheaper for companies and savings accounts pay less. But each company is different, so look at the business, not just the rate.
Three questions to ask yourself this month
- Where is my cash sitting, and what is it earning after the cut?
- Do I want to lock in today’s bond yields before they fall further, or keep money flexible?
- Does my plan still match my goals and the time I have?
This article is for education only and is not financial advice. Check current rates with your bank, broker or fund manager before you decide.
Want to turn this into a plan? Join our free 30-minute Investing Basics class on Zoom, held on the first Wednesday of every month.
