Regulatory Alerts2012-01-01
Bank of Zambia Circular 05/2012: Introduction of a Bank of Zambia Policy Rate
The Bank of Zambia issued Circular 05/2012 to introduce the BOZ Policy Rate as the key interest rate signaling its monetary policy stance, effective April 2, 2012. Commercial banks are required to realign their base lending rates to this new policy rate plus a risk-based margin and must submit interbank transaction data three times daily to the Financial Markets Department. The central bank will manage liquidity within a corridor of plus or minus 200 basis points around the policy rate and will announce rate changes via monthly communiqués.
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