HARARE – The central bank left its main interest rate unchanged on Friday, saying it wanted to keep policy tight to anchor inflation at low levels after it fell to single digits in January for the first time in over three decades.
“We need to make sure inflation is anchored first, therefore the policy rate will remain at 35 percent,” Governor John Mushayavanhu told a press conference on the outlook for monetary policy this year.
The rate has been at 35 percent since September 2024, as policymakers have tried to rein in rampant price pressures and bolster confidence in the Zimbabwe Gold (ZiG) currency, launched about two years ago.
Inflation started to slow significantly in the second half of 2025, and fell to 3.8 percent year-on-year in February, in local-currency terms.
The Reserve Bank of Zimbabwe said on Friday in a policy document that “the achievement of single-digit ZiG inflation provides scope for the eventual review of the bank policy rate”, but that caution was still warranted so as not to “risk reversing the gains on the inflation front.”
“The Reserve Bank will follow a gradual … policy adjustment path,” it continued.
The central bank expects annual inflation to stay in single digits this year, and 2026 economic growth of at least 5 percent, supported by strong commodity prices, particularly for gold and platinum group metals. – Reuters
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