Regulatory Alerts2021-01-01
Bank of Zambia 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 8.50 percent and raised the Overnight Lending Facility rate to 25 percent, effective immediately following its February 15–16 Monetary Policy Committee meeting. All commercial banks are required to apply these updated rates to their liquidity operations and lending portfolios without delay. The central bank implemented these adjustments to align market funding costs with its broader monetary policy objectives and maintain macroeconomic stability.
[LOGO] BANK OF ZAMBIA OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXE/DGO/fmkts/bp
February 17, 2021
CB Circular No. : 03/2021
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 February 15 – 16, 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 8.50 percent from the previous 8 percent. Consequently, the Overnight Lending Facility (OLF) rate has also increased to 25 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