The Reserve Bank of Zimbabwe’s Monetary Policy Committee (MPC) cut the Bank Policy Rate by 500 basis points to 30% with immediate effect, saying a structural shift to low and stable inflation justified a realignment of the policy rate while supporting growth, and it stressed that the move did not amount to monetary easing. The cut followed holds at 35% in March 2026, December 2025, September 2025 and June 2025. The MPC also reduced the Targeted Finance Facility (TFF) rate to 15% from 20%, capped banks’ all-inclusive on-lending to productive sectors at 25%, and kept statutory reserve requirements unchanged at 30% for demand deposits and 15% for savings and time deposits in both local and foreign currency. Annual inflation stood at 4.4% in May 2026 after a temporary rise in month-on-month inflation in April linked to the fuel price shock, and the economy is expected to grow 5% in 2026 from a revised 8.2% in 2025, while the MPC also welcomed initial uptake of the ZiG Denominated Term Deposit Facility (ZiGDTDF) as a step to strengthen transmission and guide minimum savings rates. Strong foreign currency inflows supported reserves backing ZiG to over USD1.5 billion by May 2026 and helped keep the ZiG/USD exchange rate stable at ZiG25-27/USD, with subdued parallel market activity. The MPC said the recent oil price shock was felt mainly through fuel prices with limited second-round effects, and that lower Brent crude prices following the US-Iran peace deal should support the declini
Reserve Bank of Zimbabwe2026-06-15
Reserve Bank of Zimbabwe cuts Bank Policy Rate by 500 basis points to 30%
The Reserve Bank of Zimbabwe’s Monetary Policy Committee cut the Bank Policy Rate by 500 basis points to 30% with immediate effect, saying a structural shift to low and stable inflation justified a realignment of the rate to support growth without amounting to monetary easing. It also reduced the Targeted Finance Facility rate to 15% from 20%, capped banks’ all-inclusive on-lending to productive sectors at 25%, kept reserve requirements unchanged, and said annual inflation of 4.4% in May 2026, reserves backing ZiG of over USD1.5 billion, and a stable ZiG25-27/USD exchange rate supported the policy stance.