Regulatory Alerts2023-01-01
Bank of Zambia Adjusts Policy Rate and Overnight Lending Facility Rate
The Bank of Zambia has increased its Policy Rate by 25 basis points to 9.50 percent and raised the Overnight Lending Facility rate to 26.0 percent, effective immediately following its May 15–16 Monetary Policy Committee meeting. The Overnight Lending Facility rate now stands 16.50 percentage points above the Policy Rate, directly impacting all commercial banks operating in Zambia. This circular formally notifies commercial bank heads of these adjustments to ensure immediate compliance with the updated monetary policy framework.
[Logo: Bank of Zambia]
Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXE/DGO/fmkts/bp
May 18, 2023
CB Circular No. : 09/2023
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 May 15 – 16, 2023, commercial banks are hereby advised that, with immediate effect, the Bank of Zambia Policy Rate has been increased by 25 basis points to 9.50 percent. Consequently, the Overnight Lending Facility (OLF) rate has also increased to 26.0 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