Regulatory Alerts2019-01-01
Bank of Zambia Circular No. 12 of 2019: Adjustments to the Overnight Lending Facility Rate
The Bank of Zambia has increased its Overnight Lending Facility rate to 28 percent, effective immediately. This adjustment raises the rate by ten percentage points above the prevailing Policy Rate, aiming to curb inflationary pressures and stabilize market conditions. The central bank will continue monitoring macroeconomic developments to ensure ongoing price and financial system stability.
# BANK of ZAMBIA
OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DGO/fmkts/bp
November 14, 2019
CB Circular No. : 12/2019
To : All Heads of Commercial Banks
## ADJUSTMENTS TO THE OVERNIGHT LENDING FACILITY RATE
Reference is made to CB Circular No. 04/2019 dated May 22, 2019.
Commercial banks are hereby advised that with immediate effect the Overnight Lending Facility (OLF) rate has been increased to 17.75 percentage points above the prevailing Bank of Zambia Policy Rate from 7.75 percentage points. This means that the OLF rate will be at 28 percent. This measure is aimed at instilling stability in the market and to rein in inflationary pressures.
The Bank of Zambia will continue to monitor developments in the macroeconomic environment consistent with its mandate of maintaining price and financial system stability.
Francis Chipimo (PhD)
DEPUTY GOVERNOR – OPERATIONS
cc Governor
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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
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