Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) Monetary Policy Committee (MPC) Friday said it will not implement any new reforms in a bid to give the current positive impact a chance.
Authorities have worked flat out for most part of the year implementing measures which have seen the ZWL stabilizing and firming up against the US$ by 40%.
Consequently, month-on-month inflation, which peaked at 74.5% in June 2023, fell to minus 15.3% in July 2023, while annual inflation fell from 175.8% in June 2023 to 101.3% in July 2023.
In a statement released shortly after a meeting on Friday , RBZ governor John Mangudya said the MPC resolved to give the measures a chance to take the toll.
“The MPC also noted that economic fundamentals are strong to sustain the current stability, as reflected by the robust economic growth of 5,3% expected in 2023, a favorable balance of payments position and fiscal sustainability.
“The strong economic fundamentals, coupled with stability in prices, will be critical in preserving the value of the domestic currency and enhancing confidence in the economy.
“In view of the current positive inflation and exchange rate developments, the MPC resolved to stay the course of the current tight monetary policy stance and allow time for the current measures to take the full course of their impact on the dual currency economy,” he said.
The MPC committed to remain watchful of any potential shocks by putting in place appropriate safeguard measures to ensure that the economy remains on track to achieving price and exchange rate stability to support the strong economic fundamentals.
