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.
[Logo: Bank of Zambia]
Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DG/fmk/bp
February 12, 2025
CB Circular No. : 08/2025
To : All Heads of Commercial Bank
ADJUSTMENT TO THE POLICY RATE AND THE OVERNIGHT LENDING FACILITY RATE
Following the Monetary Policy Committee (MPC) meeting held from February 10 – 11, 2025, commercial banks are hereby advised that, with immediate effect, the Bank of Zambia Policy Rate has been increased by 50 basis points to 14.5 percent. Consequently, the Overnight Lending Facility (OLF) rate has also increased to 31 percent, that is 16.5 percentage points above the prevailing Bank of Zambia Policy Rate.
[Signature]
Francis Chipimo (PhD) DEPUTY GOVERNOR
cc Governor Director – Financial Markets
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