The Reserve Bank of Zimbabwe (RBZ) has maintained its tight monetary policy stance, reinforcing economic stability, as inflation falls to low single-digit levels. The decision follows a Monetary Policy Committee (MPC) meeting held yesterday which highlighted sustained macroeconomic stability, declining inflation, and strong foreign currency inflows.
The MPC noted that annual inflation has significantly declined to 4.1percent in January 2026 before further easing to 3.85percent in February, marking the first time in over three decades that inflation has reached single-digit levels. Authorities expect inflation to remain below 5percent in the short term, supported by sustained economic growth, which exceeded 6.6percent in 2025.
Announcing the resolutions, RBZ Governor, Dr John Mushayavanhu said the current policy stance will be maintained to preserve price and exchange rate stability.
“In order to limit second-round effects of fuel price increases and ensure that inflation expectations remain anchored, the Monetary Policy Committee resolved to stay the course of the current monetary policy stance,” said Dr Mushayavanhu.
“To this end, the Bank Policy Rate has been maintained at 35percent, while statutory reserve requirements remain at 15percent for savings and time deposits and 30percent for demand and call deposits,” he added.
The MPC also highlighted strong external sector performance, with foreign currency inflows rising to US$3.35 billion in the first two months of 2026, up from US$1.89 billion during the same period last year, largely driven by mining exports such as gold and platinum group metals.
“The strong foreign currency inflows have helped rebuild reserves and support stability in the foreign exchange market, while providing adequate backing for the ZiG currency,” said Dr Mushayavanhu.
The Committee, however, expressed concern over rising global oil prices, noting their potential impact on domestic inflation.
“The recent oil price shock is expected to result in a temporary increase in month-on-month inflation between March and May 2026, before stabilising from June,” said Dr Mushayavanhu.
Despite these pressures, the MPC expects annual inflation to remain within single-digit levels throughout 2026.
On currency developments, the Committee welcomed positive public response to the BiG 5 ZiG banknotes awareness campaign, noting that the upgraded banknotes, set for introduction on 7 April 2026, will improve transactional convenience and strengthen confidence in the local currency.
Meanwhile, the MPC resolved to temporarily suspend the implementation of the 90percent export retention threshold for small-scale gold miners due to operational challenges, including limited banking access among artisanal miners.
“The suspension will allow for the necessary logistical arrangements to ensure smooth implementation of the policy,” said Dr Mushayavanhu.
Looking ahead, the central bank said it will remain vigilant to both global and domestic risks while ensuring that monetary policy continues to support low and stable inflation alongside economic growth projected at above 5prcent under the National Development Strategy 2.
