Regulatory Alerts2021-01-01
CB Circular No. 16/2021 Adjustment to the Policy Rate and Overnight Lending Facility Rate
The Bank of Zambia has increased its Policy Rate by 0.50 percentage points to 9 percent and raised the Overnight Lending Facility rate to 25.50 percent, effective immediately following its November 2021 Monetary Policy Committee meeting. This adjustment positions the Overnight Lending Facility rate at 16.50 percentage points above the Policy Rate, directly altering commercial banks' liquidity benchmarks and borrowing costs. All heads of commercial banks are required to implement these updated rates immediately across their operations.
[Logo: Bank of Zambia]
BANK of ZAMBIA OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DGO/fmkts/bp
November 24, 2021
CB Circular No. : 16/2021
To : All Heads of Commercial Banks
ADJUSTMENT TO THE POLICY RATE AND THE OVERNIGHT LENDING FACILITY RATE
Following the Monetary Policy Committee (MPC) meeting held from November 22 – 23, 2021, commercial banks are hereby advised that, with immediate effect, the Bank of Zambia Policy Rate has been increased by 0.50 percentage points to 9 percent from the previous 8.50 percent. Consequently, the Overnight Lending Facility (OLF) rate has also increased to 25.50 percent, that is 16.50 percentage points above the prevailing Bank of Zambia Policy Rate.
[Signature]
Francis Chipimo (PhD) DEPUTY GOVERNOR – OPERATIONS
cc Governor
Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm