The Reserve Bank of Zimbabwe has left its benchmark interest rate unchanged at 35 percent as it assess the inflationary impact of a global oil price shock while reaffirming confidence that annual inflation will remain in single digits throughout the year.
The Monetary Policy Committee, which met today (Tuesday), resolved to stay the course on its current monetary policy stance, maintaining both the bank policy rate and existing statutory reserve requirements.Agri-business consulting
Bank policy rate has been maintained at 35 percent, while statutory reserve requirements were kept at 15 percent for savings and time deposits, and 30 percent for demand and call deposits in both local and foreign currency.
The committee also temporarily suspended a recently introduced export retention threshold for small-scale gold miners following implementation challenges.
The decision comes against a backdrop of rising geopolitical tensions in the Middle East, which have triggered a sharp increase in global oil prices.
The MPC acknowledged that as a result, domestic fuel prices had risen, describing the development as a supply-side shock that would feed through to broader inflation.
“The increases in domestic fuel prices are likely to have second-round effects through adverse inflation expectations, which need an appropriate monetary policy response,” the committee said in a statement issued by Governor Dr John Mushayavahu.
Despite the near-term pressure, the MPC projected that month-on-month inflation would rise only moderately in March, April and May before returning to steady state levels from June.
Annual inflation in Zimbabwe Gold (ZiG) terms is expected to remain within single digits throughout 2026, according to the committee’s assessment.
The MPC said it would continue to monitor both international and domestic economic developments, remaining vigilant to evolving risks.
