The Reserve Bank of Zimbabwe’s Monetary Policy Committee (MPC) has maintained a steady monetary policy stance amid encouraging signs of domestic economic resilience and improved foreign currency inflows, signaling confidence in the country’s macroeconomic management.
In its meeting held on 26 September 2025, the MPC highlighted global and domestic factors shaping the economic outlook. Globally, improved trade conditions and lower effective tariffs have lifted the IMF’s 2025 growth forecast from 2.8% to 7%, providing a positive backdrop for Zimbabwe’s export-driven sectors.
Domestically, the MPC noted one year of sustained price and exchange rate stability, supporting robust economic activity. The first half of 2025 saw strong year-on-year growth of 11% in the second quarter, underpinned by agriculture and mining. Analysts suggest that the performance of these key sectors has been crucial in attracting foreign currency inflows, with receipts reaching US$10.4 billion by August 2025, up from US$8.2 billion in the same period in 2024, representing a 20.8% increase.
These inflows have strengthened Zimbabwe’s balance of payments, projected to rise from a deficit of US$501 million in 2024 to a surplus of US$1.3 billion in 2025. The improvement has also supported exchange rate stability and allowed the central bank to accumulate foreign currency reserves, which reached US$5.9 billion by late September, up from just over US$700 million at the end of June.
The MPC emphasized that prudent money supply management, together with increased inflows and growing reserves, has kept inflation under control. Monthly inflation averaged 0.6% from February to August 2025, and the central bank expects continued stability, with annual inflation trending downward toward 20% by December.
Against this backdrop, the MPC resolved to maintain the Bank Policy Rate at 35% and keep statutory reserve requirements unchanged, with savings and time deposits at 15%, and demand and call deposits at 30% for both local and foreign currency.
Governor Dr. John Mushayavanhu said the committee will continue to monitor both external and domestic risks to inflation and growth, but the current trajectory provides a firm basis for sustainable economic performance. Analysts argue that maintaining policy consistency at a time of improving macroeconomic fundamentals reinforces investor confidence and underpins continued growth and stability.
Zimbabwe’s economic narrative, bolstered by strong exports, rising reserves, and disciplined monetary policy, signals a period of cautious optimism, with the MPC positioning the country to sustain stability while supporting growth across key sectors.
