HARARE, Zimbabwe – The Reserve Bank of Zimbabwe’s Monetary Policy Committee (MPC) has opted to maintain the current monetary policy stance as the country navigates rising domestic fuel prices driven by global geopolitical tensions.
In a statement, Governor Dr. John Mushayavanhu said:
“To maintain the Bank Policy rate at 35%, and to keep statutory reserve requirements for savings and time deposits at 15%, and demand deposits at 30%, both in local and foreign currency.”
The MPC highlighted that annual inflation had dropped to 4.1% in January 2026, continuing a historic disinflation trend not seen in over three decades. Mushayavanhu added that “the low inflation outcome was achieved despite a robust economic growth rate of 6.6% in 2025”.
Rising fuel costs from geopolitical tensions in the Middle East have created a supply-side shock, which the committee said cannot easily be managed through monetary policy alone. The MPC assessed that month-on-month inflation may rise slightly in March to May 2026, before stabilising within single digits for the rest of the year.
The Committee also noted progress on the export retention threshold for small-scale gold miners, but implementation will be temporarily suspended until logistics allow smooth operationalisation.
Strong foreign currency inflows, largely from gold and platinum group metals, have helped rebuild reserves and support the local ZiG currency, the MPC said, while the upgraded BiG 5 ZiG banknotes, launching 7 April, are expected to improve transactional convenience and confidence in the local currency.
Looking forward, the MPC reaffirmed its commitment to monitor evolving economic and global developments and to implement policy adjustments as needed to sustain low inflation and robust growth in 2026. The statement concluded:
“The MPC will remain vigilant to evolving risks and stand ready to swiftly implement appropriate policy changes.”
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