THE Reserve Bank of Zimbabwe has left its benchmark interest rate unchanged at 35 percent in response to the inflationary impact of the global oil price shock, while reaffirming confidence that annual inflation will remain in single digits throughout the year.Zimbabwe travel guide
The Monetary Policy Committee, which met in Harare yesterday, resolved to “stay the course” on its current monetary policy stance, maintaining both the Bank Policy Rate and existing statutory reserve requirements.
The committee also temporarily suspended a recently introduced export‑retention threshold for small‑scale gold miners following implementation challenges.
That decision comes against a backdrop of rising geopolitical tensions in the Middle East, which have pushed up global oil prices.
The committee said domestic fuel prices had risen as a result of the Middle East conflicts, describing the development as a supply‑side shock that would feed through to broader inflation.
“The increases in domestic fuel prices are likely to have second‑round effects through adverse inflation expectations, which need an appropriate monetary policy response,” the Monetary Policy Committee said in a statement issued by RBZ Governor Dr John Mushayavanhu.
Despite near‑term pressure, the committee projected that month‑on‑month inflation would rise only moderately in March, April and May before returning to steady levels from June.
Annual inflation in ZiG terms is expected to remain within single digits throughout 2026, said the MPC.
The Bank Policy Rate was maintained at 35 percent, while statutory reserve requirements were kept at 15 percent for savings and time deposits, and 30 percent for demand and call deposits in both local and foreign currency.
On the external front, the committee noted that total foreign currency inflows had surged to US$3.35 billion in the first two months of 2026, up from US$1.89 billion in the same period last year, driven largely by strong export performance in gold and platinum group metals.
The inflows have helped rebuild foreign exchange reserves and provided adequate backing for the local currency.
The committee also discussed the implementation of a policy introduced to set an export‑retention threshold of 90 percent for small‑scale gold miners, but noted challenges encountered by Fidelity Gold Refinery in operationalising the measure, and acknowledged concerns from the Zimbabwe Mining Federation that some artisanal miners were not banked and required more time to open accounts. Zimbabwe travel guide
“In this regard, the committee resolved to temporarily suspend implementation of the policy while appropriate logistics are being put in place for the smooth operationalisation of the proposed retention requirements,” the statement reads.
The committee said it would continue to monitor both international and domestic economic developments, remaining vigilant to evolving risks.
It reaffirmed its commitment to supporting the National Development Strategy 2 target of robust economic growth above 5 percent.
The RBZ also reported positive feedback from a nationwide public awareness campaign for the upgraded Big 5 ZiG banknote series, scheduled for introduction on April 7.
The committee said the public had embraced the new banknotes and called on the RBZ to sustain prevailing price and exchange rate stability to boost confidence in the local currency.-herald
