The Reserve Bank of Zimbabwe says inflation in the country is expected to be 55% by July, against 873.53% in the same period in 2020.

In a note published on May 4, the Central Bank’s Monetary Policy Committee (MPC) revealed that the inflation rate dropped by 240.1% in March this year to 194% in April. This downward trend started in August last year following the implementation of a monetary policy aimed at stabilizing price development. The MPC says it wants to pursue this conservative guideline to ensure that the current price stability is maintained. 

The Central Bank also announced reforms that should help strengthen the economic recovery and boost productivity. These include maintaining the Bank's policy rate at 40% to stimulate loan applications and also investing $1.3 million (Z$500 million) in financing for micro, small and medium enterprises (MSMEs). Support for MSMEs will be deployed with an annual interest rate of 30% to improve production and productivity in all economic sectors.

It should also be noted that the policy of supporting Forex bureaus for foreign currency needs should continue, to support MSMEs that need foreign currency for their production needs.

Carine Sossoukpè (intern)