Bank of Zambia to introduce interest rate Benchmark in April
The Bank of Zambia has announced that it would introduce a benchmark interest rate called the Bank of Zambia Policy Rate from the beginning of April.
According to the statement released to the media today by BOZ, it is expected that the standard policy of quoting loans and similar credit products by all Commercial banks will take the form of BOZ Policy rate plus the margin charged by commercial Banks.
The statement further said the first Policy Rate would be announced on March 29, and would come into effect on April 2, and would provide financial markets with a “credible and stable anchor for setting interest rates”.
“The increased reliance on interest rate policy-based instruments is expected to provide a relatively more transparent and efficient process through which the Bank of Zambia can better anchor inflation expectations,” it added.
Below is the full press statement.