Zimbabwe Central Bank Plans New Economic Measures.
The Reserve Bank of Zimbabwe will unveil fresh policies to tackle inflation and boost growth, Governor John Mushayavanhu announced ahead of the bank's 2025 Monetary Policy Statement.
The bank faces multiple challenges: rising prices, high borrowing costs, cash shortages, and struggles in the farming and manufacturing sectors. These issues mirror global economic pressures following COVID-19.
"We must balance inflation control with economic recovery," Mushayavanhu told The Herald Finance and Business. "Our policy needs flexibility to address both concerns."
The bank launched a Targeted Finance Facility to increase production and stabilize prices. This program aims to help Zimbabwe reach its 6% growth target for 2025.
"Each sector needs different support," said Mushayavanhu. "We focus on high-growth areas but remain careful about monetary limits."
Recent data shows increasing pressure on the economy. The Zimbabwe National Statistics Agency reported the local currency inflation rate jumped from 3.7% to 10.5% between December and January.
US dollar prices also surged, with inflation rising from 0.6% to 11.5%. The combined price index for both currencies increased by 11.6%.
These trends pushed the Consumer Price Index up to 183.76 in January from 166.30 in December for the local currency. The US dollar index climbed to 121.43 from 108.91.
"These figures show how local and foreign money affect our markets," the statistics office noted.
The central bank plans to adjust its policies based on changing risks. "We aim for steady growth and controlled inflation," Mushayavanhu said. His upcoming statement will detail specific steps to achieve these goals.
The bank's strategy includes targeted support for key industries. This approach helps manage the effects of strict monetary controls on business growth.
"Our policies support strong recovery with market stability," Mushayavanhu added, highlighting the bank's focus on long-term economic health.
The Reserve Bank of Zimbabwe will unveil fresh policies to tackle inflation and boost growth, Governor John Mushayavanhu announced ahead of the bank's 2025 Monetary Policy Statement.
The bank faces multiple challenges: rising prices, high borrowing costs, cash shortages, and struggles in the farming and manufacturing sectors. These issues mirror global economic pressures following COVID-19.
"We must balance inflation control with economic recovery," Mushayavanhu told The Herald Finance and Business. "Our policy needs flexibility to address both concerns."
The bank launched a Targeted Finance Facility to increase production and stabilize prices. This program aims to help Zimbabwe reach its 6% growth target for 2025.
"Each sector needs different support," said Mushayavanhu. "We focus on high-growth areas but remain careful about monetary limits."
Recent data shows increasing pressure on the economy. The Zimbabwe National Statistics Agency reported the local currency inflation rate jumped from 3.7% to 10.5% between December and January.
US dollar prices also surged, with inflation rising from 0.6% to 11.5%. The combined price index for both currencies increased by 11.6%.
These trends pushed the Consumer Price Index up to 183.76 in January from 166.30 in December for the local currency. The US dollar index climbed to 121.43 from 108.91.
"These figures show how local and foreign money affect our markets," the statistics office noted.
The central bank plans to adjust its policies based on changing risks. "We aim for steady growth and controlled inflation," Mushayavanhu said. His upcoming statement will detail specific steps to achieve these goals.
The bank's strategy includes targeted support for key industries. This approach helps manage the effects of strict monetary controls on business growth.
"Our policies support strong recovery with market stability," Mushayavanhu added, highlighting the bank's focus on long-term economic health.
