Regulatory Alerts2023-01-01
CB Circular No. 03 of 2023: Adjustment to the Policy Rate and Overnight Lending Facility Rate
The Bank of Zambia increased its Policy Rate by 0.25 percentage points to 9.25 percent and raised the Overnight Lending Facility rate to 25.75 percent, effective immediately following its February 13–14 Monetary Policy Committee meeting. All commercial banks must apply these updated rates immediately, maintaining a 16.50 percentage point spread between the lending facility and policy benchmarks. This directive mandates immediate implementation across the banking sector to ensure consistent monetary transmission following recent committee deliberations.
[Logo: Bank of Zambia]
Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXE/DGO/fmkts/bp
February 15, 2023
CB Circular No. : 03/2023
To : All Heads of Commercial Banks
ADJUSTMENT TO THE POLICY RATE AND THE OVERNIGHT LENDING FACILITY RATE
The Bank of Zambia wishes to announce that following the Monetary Policy Committee (MPC) meeting held from February 13 – 14, 2023, commercial banks are hereby advised that, with immediate effect, the Bank of Zambia Policy Rate has been increased by 0.25 percentage points to 9.25 percent from the previous 9.0 percent. Consequently, the Overnight Lending Facility (OLF) rate has also increased to 25.75 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