Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) says the current projections of attaining a single digit local currency inflation rate is set to break a two decades long history.
Presenting the latest outcomes from the Monetary Policy Committee’s deliberations, RBZ governor John Mushayavanhu said the positive developments on the inflation front; saw the dissipation of base effects and the deceleration of ZiG annual inflation from 82.7% in September to 32.7% in October and further to 19.0% in November 2025.
In this regard, he said annual inflation is expected to continue declining further, ending the year 2025 at 15-17%, compared to the previously forecast range of 20-30%.
“For the first time in more than 20 years, local currency annual inflation is expected to reach single-digit levels in the first quarter of 2026. Importantly, the maintenance of a prudent monetary policy stance since September 2024 has been critical in supporting the disinflation process and general macroeconomic stability,” Mushayavanhu said.
As part of its resolutions the MPC decided to maintain the bank policy rate at 35% to sustain the local currency stability.
The RBZ believes that keeping the policy rate at that margin is a strategy aimed at closing out all the speculative borrowing tendencies which have been a pillar to support parallel market activities in the parties, effectively contributing towards exchange rate depreciation.
The MPC welcomed the positive developments on the inflation front, which saw the dissipation of base effects and the deceleration of ZiG annual inflation from 82.7% in September to 32.7% in October and further to 19.0% in November 2025.
“The obtaining macroeconomic stability has created a conducive environment for growth, with the economy expected to grow by 6.6% in 2025, underpinned by strong performances in the mining and agriculture sectors, notwithstanding uncertainty in the global economic growth trajectory,” added Mushayavanhu.
