- Decision
- Maintain
- Rate change
- 0 bps
- policy rate
- 35%
The Reserve Bank of Zimbabwe’s Monetary Policy Committee kept the Bank Policy rate at 35% for the next quarter, saying one year of price and exchange rate stability, low inflation pressures and robust domestic activity justified staying the course to durably anchor stability; the rate was also held at 35% in June 2025. The central bank also left statutory reserve requirements unchanged. Monthly ZiG inflation averaged 0.6% between February and August 2025, and the MPC said annual inflation, which started decelerating in August, should decline more sharply in the third and fourth quarters and trend toward 20% by December 2025, while second-quarter year-on-year growth was estimated at 11%, supported by agriculture and mining. Stronger foreign currency inflows, led by gold and tobacco exports, were said to be improving the current account, supporting the smooth functioning of the Willing Buyer Willing Seller interbank foreign exchange market and lifting reserves to about USD900 million by 25 September 2025 from just over USD700 million at end-June. The MPC said global growth prospects had improved on lower effective trade tariff rates and better financial conditions, and it will continue to review its policy stance in line with evolving domestic and external risks to inflation and growth.
Rate evolution
The Reserve Bank of Zimbabwe held the Bank policy rate at 35% from June 2025 through March 2026 before cutting it by 500 basis points to 30% in June 2026, leaving the rate 500 basis points lower over the period. The prolonged hold sought to entrench price and exchange rate stability, anchor inflation expectations and allow tight monetary conditions to transmit, as monthly inflation remained low, annual inflation fell into single digits, foreign currency inflows and reserves strengthened, and growth stayed robust despite uncertainty over global growth, trade tensions and geopolitical conflict. By March 2026, risk framing had shifted toward the oil-price shock and possible second-round effects on expectations, prompting continued restraint even though the Reserve Bank viewed the shock as supply-side and expected inflation to remain in single digits. In June, after inflation stayed below 5%, oil-price pass-through proved limited, expectations remained anchored, reserves rose and the exchange rate remained stable, the Committee cut the rate to support 5% projected growth but called the move a realignment rather than easing, while signalling meeting-by-meeting calibration and vigilance toward emerging risks.