Zimbabwe c. bank maintains policy rate

Zimbabwe’s Reserve Bank Monetary Policy Committee (MPC) will maintain its policy rate at 35 per cent and statutory reserve requirements for savings and time deposits at 15 per cent, with demand and call deposits remaining at 30 per cent.

The MPC highlighted that its recent monetary measures have tightened liquidity and curbed speculative activity, stabilising both the exchange rate and inflation. Month-on-month (MoM) inflation dropped from 37.2 per cent in October to 11.7 per cent in November 2024, following a September currency depreciation.

Foreign currency inflows increased by 19.1 per cent year-on-year (YoY) to $11.05 billion in the first 10 months of 2024, supporting exchange rate stability. The central bank aims to enhance the efficiency of its interbank forex market and expects inflation to moderate to pre-October levels.

To support the productive sector amidst tight liquidity, the MPC introduced a Targeted Finance Facility (TFF), with details to be shared with banks. The committee will review its policy stance based on inflation and exchange rate developments.

Attribution: Zimbabwe’s Reserve Bank MPC

Subediting: M. S. Salama