LUSAKA, May 17 (Reuters) – Zambia’s central bank on Wednesday raised its key interest rate by 25 basis points to 9.50% as inflation in the copper-rich nation remained high.

The Bank of Zambia said inflation was expected to remain above the 6%-8% target band over the forecast horizon, which runs until the last quarter of next year.

Annual inflation (ZMCPIY=ECI) edged higher to 10.2% in April from 9.9% in March.

The bank also raised its main rate by 25 basis points at its previous rate-setting meeting in February, after keeping it unchanged at 9.0% since November 2021.

The southern African nation was the first country in Africa to default on its sovereign debt during the COVID-19 era and has struggled to agree a relief deal with its external creditors. It secured a $3 billion IMF funding last August.

“Further delays in external debt restructuring negotiations, tighter global financial conditions… the impact of the prolonged Russia-Ukraine war on food and energy prices remain key upside risks to the inflation outlook,” the central bank said.

Reporting by Chris Mfula; Writing by Bhargav Acharya; Editing by Olivia Kumwenda-Mtambo