Regulatory Alerts2023-01-01
Bank of Zambia Adjustment to the Policy Rate and Overnight Lending Facility Rate
The Bank of Zambia has increased its Policy Rate by fifty basis points to ten percent and raised the Overnight Lending Facility rate to twenty-six point five percent, effective immediately following the August 21–22 Monetary Policy Committee meeting. Issued by the Deputy Governor for Operations to all commercial bank heads, this directive mandates an immediate adjustment to maintain a sixteen point five percentage point spread between the two rates. Commercial banks must promptly update their pricing mechanisms to comply with the revised monetary policy parameters.
Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DGO/fmkts/bp
August 23, 2023
CB Circular No. : 23/2023
To : All Heads of Commercial Banks
ADJUSTMENT TO THE POLICY RATE AND OVERNIGHT LENDING FACILITY RATE
Following the Monetary Policy Committee (MPC) meeting held from August 21 – 22, 2023, commercial banks are hereby advised that, with immediate effect, the Bank of Zambia Policy Rate has been increased by 50 basis points to 10 percent. Consequently, the Overnight Lending Facility (OLF) rate has also increased to 26.5 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