Regulatory Alerts2025-01-01
Bank of Zambia Circular No. 08/2025: Adjustment to the Policy Rate and Overnight Lending Facility Rate
The Bank of Zambia has increased its Policy Rate by 50 basis points to 14.5 percent and raised the Overnight Lending Facility rate to 31 percent, effective immediately following its February 2025 Monetary Policy Committee meeting. This adjustment positions the Overnight Lending Facility rate 16.5 percentage points above the new Policy Rate, directly impacting all commercial banks operating under the central bank's regulatory framework. Commercial banks must align their lending and deposit pricing structures with these updated benchmark rates to ensure compliance with the central bank's monetary policy directives.
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