The Reserve Bank of Zimbabwe’s Monetary Policy Committee kept the bank policy rate at 35% in June 2025, saying positive domestic macroeconomic developments and the need to sustain price and exchange-rate stability warranted staying the course, while projecting the economy to grow 6% in 2025 despite an uncertain external environment. The central bank also left statutory reserve requirements unchanged and said tighter liquidity management would continue through recalibrated open market operations, with excess balances absorbed via 30-day Non-Negotiable Certificates of Deposit and early terminations restricted to government tax pay-overs and purchases of foreign exchange from the Reserve Bank. It said monthly ZiG inflation remained below 1% and annual inflation rose to 92.1% in May because of base effects from the September 2024 once-off exchange-rate depreciation, but is expected to decline in the last quarter and end 2025 below 30%; it also pointed to wider use of ZiG in transactions and the supplementary liquidity support provided by the Targeted Finance Facility. On the external side, the Willing-Buyer Willing-Seller foreign exchange interbank market continued to deepen, bona fide demand was being met, the parallel-market premium was stable at around 20%, and foreign-currency reserves fully covered ZiG reserve money and local-currency deposits. The MPC said escalating trade tensions, geo-economic fragmentation, conflicts and policy uncertainty had weakened the global growth
Reserve Bank of Zimbabwe2025-06-16
Reserve Bank of Zimbabwe Holds Bank Policy Rate at 35%
The Reserve Bank of Zimbabwe kept the bank policy rate at 35% in June 2025 and left statutory reserve requirements unchanged, citing improved domestic macroeconomic conditions and the need to preserve price and exchange-rate stability, while maintaining tight liquidity management through recalibrated open market operations. The Monetary Policy Committee projected 6% gross domestic product growth in 2025, said annual ZiG inflation rose to 92.1% in May due to base effects but should fall below 30% by end-2025, and noted continued deepening of the foreign exchange interbank market with reserves fully covering ZiG reserve money and local-currency deposits.