The Monetary Policy Committee (MPC) of the Reserve Bank of Zimbabwe (the Bank) met on 26 September 2023 to discuss and assess the prevailing monetary and fiscal conditions and their impact on sustaining the current price stability in the economy.
The MPC noted with satisfaction the sustained decline in month-on-month inflation from a peak of 74.5% in June 2023 to minus 15.3% in July 2023, minus 1.3% in August 2023 and 1.0% in September 2023. Annual inflation also fell from a peak of 175.8% in June 2023 to 18.45 in September 2023. The outlook was that month-on-month inflation would be contained below 3% and annual inflation would end the year 2023 at below 20%.
The MPC also noted that monetary and financial conditions were conducive to sustain the prevailing stability given the robust economic growth of 5.3% expected in 2023, high foreign currency inflows relative to external payments and fiscal sustainability.
In light of the positive developments, the MPC resolved to continue with the tight monetary policy stance and to safeguard financial stability in the economy by :
(i) Maintaining the Bank Policy rate at 150% per annum and retaining the Medium-Term Accommodation (MBA) lending facility at 75% per annum; and
(ii) Standardising the statutory reserve requirements for both foreign and local currency deposits at 155 and for savings and time deposits at 5%.