Temba Dube
Judith Phiri [email protected]
THE Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Mushayavanhu, has said monetary authorities are determined to maintain the country’s low inflation rate despite potential risks arising from geopolitical developments in the Middle East, which could trigger increases in global fuel prices.
Geopolitical tensions in the Middle East have escalated significantly as of March 2026, shifting from proxy conflicts to direct, high-stakes military confrontations, developments that could exert pressure on international oil markets and subsequently impact domestic fuel costs.
Speaking while unpacking the 2026 Monetary Policy Statement and launching the upgraded Big 5 ZiG banknotes in Bulawayo,
Dr Mushayavanhu said Zimbabwe has successfully achieved single-digit inflation, underpinned by growing economic stability and steady prices of goods and services.
“Notably, the economy has witnessed a progressive disinflation trend as evidenced by the significant decline in annual ZiG inflation from peak levels of 95.8 percent in July 2025, to low single-digit levels of 4.1 percent in January 2026.
“The decline in annual local currency inflation to single-digit levels, is a significant milestone that has been achieved for the first time in over 30 years. Importantly, the low inflation rate is a critical condition precedent for safeguarding the stability of the domestic currency.”
Looking ahead, the Governor said annual ZiG inflation is projected to remain within single-digit levels, supported by prudent monetary policy measures and complementary fiscal policy interventions.
Online Reporter