The Bank of Zambia has with immediate effect increased by 17.75 % the overnight lending rate.

The 17.75 percentage points is above the prevailing policy rate from 7.75 percentage points.

This is according to a circular issued to heads of commercial banks by Bank of Zambia deputy governor for operations Dr Francis Chipimo.

“The measure is aimed at instilling stability in the market and rein in inflationary pressures,”Dr Chipimo said.
This means starting tomorrow, all financial lending institutions will increase their rates by 17.75% and this will have a devastating effect on the lives of Zambians as many people especially civil servants will be failing to get loans. Those who already gotten loans be it from Atlas Mara, BayPort, ZANACO, Barclays or indeed from any bank or lending institutions, the rates will be tomorrow increased by 17.75% and this means loans will be extended by two or three years. In a nutshell if your loan was to end next year in 2020, it will end it 2022.