- 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% and left reserve requirements unchanged, citing faster-than-expected disinflation, a 6.6% growth outlook and the need to entrench price, currency and exchange rate stability while durably anchoring inflation expectations; the rate was also held at 35% in September and June 2025. The MPC maintained statutory reserve requirements at 15% for savings and time deposits and 30% for demand and call deposits in both local and foreign currency. Annual ZiG inflation slowed to 19.0% in November 2025 from 32.7% in October and 82.7% in September, and is now expected to end 2025 at 15-17%, versus a previous 20-30% range, with single-digit local-currency annual inflation projected in the first quarter of 2026; growth in 2025 is expected to be underpinned by mining and agriculture. On the external side, foreign currency inflows topped USD13 billion in the 10 months to October, up more than 21% from a year earlier, while reserves backing the ZiG reached about USD1 billion, or more than 1.2 months of import cover, supporting smooth operation of the Willing-Buyer Willing-Seller foreign exchange market and full coverage of bona-fide import and payment demand. The MPC said the economy still faces uncertainty in the global growth trajectory and reaffirmed a well-calibrated, data-driven stance, adding that interest rates will be gradually normalised only once a low and stable inflation environment is entrenched.
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.