- Decision
- Maintain
- Rate change
- 0 bps
- policy rate
- 35%
The Reserve Bank of Zimbabwe’s Monetary Policy Committee (MPC) kept the Bank Policy Rate at 35%, saying it would stay the course to limit second-round effects from recent fuel price increases, keep inflation expectations anchored and preserve low, stable single-digit inflation alongside firm growth prospects. The rate was also held at 35% in June, September and December 2025. The MPC also left statutory reserve requirements unchanged at 15% for savings and time deposits and 30% for demand and call deposits in both local and foreign currency. Annual inflation slowed to 3.85% in February 2026 and is expected to remain below 5% in March, while month-on-month inflation is seen rising slightly in March to May before returning to steady-state levels from June; the MPC said the economy grew by above 6.6% in 2025 and that growth prospects for 2026 remain strong despite a mid-season dry spell in February. Total foreign-currency inflows rose to USD 3.35 billion in the first two months to February 2026 from USD 1.89 billion a year earlier, helping rebuild foreign-exchange reserves, support foreign-exchange market stability and back the ZiG. The MPC said the recent oil price shock, driven by geopolitical tensions in the Middle East, is a supply-side shock that monetary policy cannot easily manage, and it signalled it will remain vigilant and ready to adjust policy swiftly if needed.
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.