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THE Reserve Bank of Zimbabwe Monetary Policy Committee has said monetary and financial conditions are conducive to sustain the prevailing stability given the robust economic growth of 5,3 percent expected in 2023.
In an update, MPC noted with satisfaction the sustained decline in month-on-month inflation from a peak of 74.5 percent in June to minus 15.3 percent in July minus 1.3 percent in August and 1.0 percent in September.
“Annual inflation also fell from a peak of 175.8 percent June 2023 to 18.4 percent in September 2023. The outlook was that month-on-month inflation would be contained below 3 per and annual inflation would end the year 2023 at below 20 percent.”
The MPC also noted that monetary and financial conditions were conducive to sustain the prevailing stability given the robust economic growth of 5,3 percent 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 maintaining the Bank Policy rate at 150 percent per annum and retaining the Medium- Term Accommodation (MBA) lending facility at 75 percent er annum; and Standardising the statutory reserve requirements for both foreign and local currency deposits at 15 percent and for savings and time deposits at five percent.”
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