Zimbabwe's central bank projects 5% annual inflation

The Reserve Bank of Zimbabwe (RBZ) anticipates annual inflation to decline sharply to just 5% by the end of the year, supported by stability in the Zimbabwe Gold (ZiG) currency and exchange rates.

RBZ Governor John Mushayavanhu reported that recent measures under a tight Monetary Policy Stance (MPS) have led to significant inflation reduction, with a monthly inflation rate of -2.4% in May 2024 and an expected near-zero inflation rate in June 2024.

The introduction of the ZiG currency on April 5, 2024, has maintained stability against the US dollar at a rate of US$1: ZiG 13.56, curbing volatility in the parallel market for three consecutive months.

Consequently, prices of essential goods have stabilized compared to pre-ZiG levels.

The MPC has decided to uphold current monetary policy measures, including a 20% Bank Policy rate and maintaining statutory reserve requirements for various deposit types.

The RBZ remains committed to backing reserve money with gold, other minerals, and foreign currency to support economic growth and currency stability.