Regulatory Alerts2015-01-01
Bank of Zambia Circular No. 20/2015: Increase in the Overnight Lending Facility Rate
The Bank of Zambia has increased its Overnight Lending Facility rate to 1000 basis points above the prevailing policy rate, effective immediately. This adjustment aligns with the central bank's monetary strategy to curb rising inflationary pressures across the economy. The regulator will periodically reassess the eligibility criteria for commercial banks accessing this lending facility.
[Logo: Bank of Zambia]
Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXE/DGO/fmkts/bp
November 10, 2015
CB Circular No. : 20/2015
To : All Heads of Commercial Banks
INCREASE IN THE OVERNIGHT LENDING FACILITY RATE
The Bank of Zambia wishes to advise all commercial banks that with immediate effect, the Overnight Lending Facility (OLF) rate will be set at 1000 basis points above the prevailing Bank of Zambia Policy Rate.
This measure is in line with the Bank’s monetary stance aimed at attenuating inflationary pressures.
The Bank of Zambia will review the conditions for accessing the OLF from time to time.
[Signature]
Bwalya K. E. Ng’andu (Dr) DEPUTY GOVERNOR – OPERATIONS
Cc Governor Director – Financial Markets
Bank Square, Cairo Road P.O. Box 30080, Lusaka, Zambia Tel: 260-211-226844, 228888 Fax:260-211-237070 E-mail:dgo@boz.zm, Web: http://www.boz.zm