Regulatory Alerts2019-01-01
Bank of Zambia Circular No. 04/2019: Adjustment in the Overnight Lending Facility Rate
The Bank of Zambia has immediately increased the Overnight Lending Facility rate from 600 to 775 basis points above its Policy Rate. Commercial banks must submit a written explanation detailing the utilization of accessed funds to the Director – Bank Supervision by the close of the following business day. This adjustment aligns with the central bank’s monetary policy stance to curb inflationary pressures and will be subject to ongoing macroeconomic monitoring.
# Bank Of Zambia
OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXE/DGO/fmkts/bp
May 22, 2019
CB Circular No. : 04/2019
To : All Heads of Commercial Banks
## ADJUSTMENT IN THE OVERNIGHT LENDING FACILITY RATE
Further to CB Circular No. 02/2018 dated February 21, 2018, the Bank of Zambia wishes to advise all commercial banks that, with immediate effect, the Overnight Lending Facility (OLF) rate will be set at **775 basis points** above the prevailing Bank of Zambia Policy Rate from **600 basis points** previously. In addition, commercial banks shall provide a written explanation on how the funds accessed from the OLF were utilised. This information should be submitted to the Director – Bank Supervision and copied to Director – Financial Markets by the close of the following business day.
These measures are in line with the monetary policy stance of the Bank of Zambia aimed at curbing inflationary pressures.
The Bank of Zambia will continue to monitor developments in the macroeconomic environment and review the conditions for accessing the OLF from time to time.
---
**Bwalya K. E. Ng’andu (Dr)**
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
Share