Regulatory Alerts2019-01-01
Bank of Zambia Circular No. 13/2019 on the Overnight Lending Facility Rate
The Bank of Zambia has maintained its Overnight Lending Facility rate at 28.00 percent, despite raising the Policy Rate by 1.25 percentage points to 11.50 percent. This adjustment reduces the margin between the two rates to 16.50 percentage points from a previous 17.75 percentage points. 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 20, 2019
CB Circular No. : 13/2019
To : All Heads of Commercial Banks
# OVERNIGHT LENDING FACILITY RATE
Reference is made to CB Circular No. 12/2019 dated November 14, 2019 on the above subject.
The Bank of Zambia wishes to advise all commercial banks that despite the increase in the Bank of Zambia (BoZ) Policy Rate today by 1.25 percentage points to 11.50%, the Overnight Lending Facility (OLF) Rate will be maintained at 28.00%. This means that with the increase in the BoZ Policy Rate, the margin between the OLF Rate and the BoZ Policy Rate has been reduced to 16.50 percentage points from 17.75 percentage points previously.
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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