By Daily Revelation Reporter
Financial markets have started responding to the effects of the upwards adjustment in the Monetary Policy Rate and the Reserve Ratio by the Bank of Zambia (BoZ), by hiking their own interest rates on their customers.
The upward adjustment from 10 percent to 11 percent in the Monetary Rate, the rate at which BoZ lends out money to financially stable financial institutions, usually results in financial institutions passing on the burden to the consumers by hiking rates at which people can borrow money from the same institutions.
In a public notice today, the Zambia National Commercial Bank, announced an upward adjustment in their own rates by 1 percent effective December 01, 2023.
“Dear Customer, Following the Bank of Zambia (BoZ) Monetary Policy Committee (MPC) statement announcing the increase in the BOZ Monetary Policy Rate (MPR) from 10.00% to 11.00% (100 basis points), please be advised that the interest rate on your credit facility with Zanaco will increase by 1% on 1st December, 2023,” the Bank stated. “This adjustment may either result in increased loan tenors or increased monthly instalments. Customers are hereby advised to kindly visit their nearest branch to advise which option is preferred. Should we not hear from our respective customers by Thursday, 30th November, 2023, the bank will proceed with the increased loan tenor option. For relationship managed and other Business customers, your relationship manager will contact you with further details.”
