Regulatory Alerts2023-01-01
Bank of Zambia Circular No. 32/2023: Adjustment to the Policy Rate and Overnight Lending Facility Rate
The Bank of Zambia has increased its Policy Rate by 100 basis points to 11 percent and raised the Overnight Lending Facility rate to 27.5 percent, effective immediately following its November 20–21 Monetary Policy Committee meeting. This adjustment, communicated via Circular No. 32/2023 to all commercial bank heads, establishes a 16.50 percentage point spread between the two rates. Financial institutions must align their lending and deposit pricing structures accordingly to reflect the tightened monetary conditions.
[Logo: Bank of Zambia]
Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DGO/fmkts/bp
November 22, 2023
CB Circular No. : 32/2023
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 November 20 – 21, 2023, commercial banks are hereby advised that, with immediate effect, the Bank of Zambia Policy Rate has been increased by 100 basis points to 11 percent. Consequently, the Overnight Lending Facility (OLF) rate has also increased to 27.5 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