The Reserve Bank of Zimbabwe’s Monetary Policy Committee has maintained a tight policy stance, amidst a stabilizing economy.
The committee met recently to assess performance of the Monetary Policy Statement from 5 April 2024 and discuss recent economic developments.
In a statement, RBZ governor John Mushayavanhu (pictured) noted the challenges and achievements registered.
Achievements:
💠Stabilized exchange rate and domestic prices.
💠Despite El Nino-induced drought, economy expected to grow by 2% in 2024.
💠May 2024 saw a month-on-month ZiG inflation rate of -2.4%.
💠June 2024 inflation projected at around 0%.
💠Projected end-of-year inflation below 5%.
Policy Resolutions:
💠Maintain Bank Policy rate at 20% per annum with an interest rate corridor of 11% to 25%.
💠Statutory reserve requirements for demand deposits, and savings and time deposits in ZiG to remain at 15% and 5%, respectively.
💠Foreign currency statutory reserve requirements for demand deposits, and savings and time deposits to remain at 20% and 5%, respectively.
Future Commitment: Address emerging risks, ensure money supply growth aligns with 5% inflation target, and back reserve money with gold, other precious minerals, and foreign currency reserves to support economic activity and currency stability.
