RBZ holds interest rates steady
STAFF WRITER
The Reserve Bank of Zimbabwe (RBZ) governor, John Mushayavanhu, has announced that the bank will keep the policy rate steady at 35% and retain current statutory reserve requirements. This decision aims to sustain stability in both the exchange rate and inflation.
In a statement issued after the Monetary Policy Committee (MPC) meeting last Friday, Mushayavanhu highlighted the effectiveness of recent measures in tightening liquidity and reducing speculative activities in the foreign exchange market.
“The MPC noted with satisfaction that the exchange rate and inflation have relatively stabilised since October 2024,” said Mushayavanhu.
“This stability is evidenced by the significant narrowing of the exchange rate premium and a decline in month-on-month inflation from 37.2% in October 2024 to 11.7% in November 2024.”
The MPC resolved to maintain its tight monetary policy stance with the following measures:
Bank Policy Rate: Retain the policy rate at 35%.
Statutory Reserve Requirements: Maintain 15% for savings and time deposits (local and foreign currency) and 30% for demand and call deposits (local and foreign currency).
Interbank Market Efficiency: Continue enhancing the price discovery mechanism in the interbank foreign exchange market.
Additionally, Mushayavanhu noted that the quarterly corporate tax payment structure, involving a 50/50 US$:ZiG arrangement, is expected to boost foreign currency availability in the interbank forex market.
By maintaining these policies, the RBZ aims to solidify the economic gains achieved in recent months.
