THE Reserve Bank of Zimbabwe (RBZ) has maintained the bank policy rate at 35 percent and kept the statutory reserve requirements unchanged to consolidate exchange and inflation rate gains.
In a statement issued after the Monetary Policy Committee (MPC) meeting over the weekend, central bank Governor Dr John Mushayavanhu noted that the tight monetary policy being pursued is yielding positive results.
The RBZ Chief cited the continuous gains in exchange rate stability and the drop in ZiG inflation since January as milestones by the authorities in maintaining stability.
In line with the current stable economic conditions, the MPC resolved to keep the bank policy rate and statutory reserve requirements unchanged.
Monetary authorities are also expecting inflation to moderate in the last quarter of this year at less than 30 percent.
The RBZ also revealed its commitment to the newly launched Targeted Finance Facility aimed at helping firms in need of funding.
It also states that continuous monitoring and evaluation of policies safeguards the economy against emergency risks.
As Zimbabwe moves towards economic stability, market watchers recently called on the central bank to continue implementing the 2025 roadmap to achieve its intended goals.
Meanwhile, stability of Zimbabwe Gold (ZiG) is expected to lead to more transactions being conducted in the local currency, including for fuel sales, as the market begins to warm up to its use as a store of value and reliable medium of exchange, the Reserve Bank of Zimbabwe (RBZ) has said.
Since the introduction of ZiG last year, some transactions, such as passport fees and fuel purchases, have been solely in US dollars, as the Government sought to ensure price stability and prevent volatility in critical sectors while the local unit gained market confidence.
