RBZ maintains contractionary stance | Business Times

BUSINESS REPORTER

The Reserve Bank of Zimbabwe (RBZ) has kept its contractionary monetary policy stance for the remainder of the year to maintain macro-economic stability.

In his mid-term monetary policy review statement, RBZ Governor John Mangudya, expressed satisfaction with the outcomes of the actions that have steered the domestic market and the exchange rate.

“The policy measures put in place by the bank and government have re-oriented the country onto the right track to macroeconomic stability. As such is staying the course to price stability by maintaining the current tight monetary policy stance during the six months to December 2023 with fine tuning on open market operations to ensure attainment of the full benefits of monetary and fiscal consolidation to sustainably anchor inflation and exchange rate expectations,” Mangudya said.

 

Interest rates and statutory reserve requirements have been kept constant.

 

The lending rate for medium-term accommodations to productive sectors will be maintained at 75%, while the bank’s policy rate will remain at 150%.

Following the measures put in place, Zimbabwe has experienced relative stability in recent weeks largely as a result of liquidity management measures implemented by government.

 

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