The Reserve Bank of Zimbabwe (RBZ) is expected to maintain its current monetary policy direction when Governor Dr John Mushayavanhu delivers the 2026 Mid-Term Monetary Policy Review this week, as authorities seek to protect recent gains in economic stability.
With inflation remaining relatively subdued since the beginning of the year, analysts believe the review is likely to focus less on major policy shifts and more on strengthening measures that have helped stabilise the economy.
In an interview with the media, yesterday, Confederation of Zimbabwe Industries (CZI) Macroeconomic Committee Chairperson, Jimmy Pscillos said maintaining a tight monetary policy stance would reinforce confidence in the economy, particularly following the achievement of single-digit inflation.
“This is that time when we expect the central bank to stay the course of a tight monetary policy stance at a time when there are several milestones achieved by the nation, such as single-digit inflation levels,” he said.
The review is expected to assess developments in inflation, the bank policy rate, foreign currency receipts, the upgraded Big Five ZiG banknotes and the country’s gold reserves.
Market participants are also looking for greater clarity on measures affecting businesses and consumers, including bank charges, withdrawal limits, transaction fees and developments in the foreign exchange market.
Buy Zimbabwe Chief Executive Officer and Chairperson, Munyaradzi Hwengwere, said strengthening confidence in the local currency remained critical to increasing domestic savings and encouraging greater use of the ZiG.
“Savings are key and it is also vital that domestic currency circulation is given attention,” he said, adding that confidence-building policies could stimulate greater use of the ZiG and support local industry.
Another area expected to attract attention is exporters’ foreign currency retention requirements, with businesses keen to understand whether the current framework will be maintained or adjusted to improve access to foreign currency.
Parliamentary Portfolio Committee on Budget, Finance and Investment Promotion member, Lincoln Dhliwayo said significant changes were unlikely given that key macroeconomic issues had already been addressed through the national budget framework.
“I do not expect any changes in the Monetary Policy since most of the overall macroeconomic stability issues were given attention in the budget review,” he said.
The monetary policy review comes as Government targets five percent economic growth this year, with mining, agriculture and broader improvements in macroeconomic stability expected to drive expansion.
The Central Bank therefore faces the task of balancing price stability with the need to ensure adequate liquidity and financing for productive sectors.
For industry, the key expectation is policy predictability, with analysts arguing that maintaining a consistent monetary framework could help consolidate stability while giving businesses greater confidence to invest, produce and expand.
The review will consequently provide an important signal on whether Zimbabwe intends to maintain the current stability-focused approach or introduce targeted adjustments to support economic growth in the second half of 2026.
