The Reserve Bank of Zimbabwe (RBZ) projects inflation to fall considerably to less than 15% this December.
According to government statistics agency ZimStat, inflation was at 59,4% in February.
The expected decline in the rate of inflation was revealed by RBZ deputy director for economic research division Nebson Mupunga on Thursday. He said:
We will pin down inflation to go down 15% by year-end. We will ensure that we control the money supply.
Broad money supply growth peaked at 47,5% in July 2018 and decelerated to 23,7% by December 2018. If the decline in money supply growth is sustained, inflation will stabilise.
The fiscal consolidation and austerity measures being implemented by the government create a conducive environment for monetary policy to focus on the core objective of price and financial stability, including a stable and predictable exchange rate. So this complementarity will make the economy move forward.
In the past few years, inflation was being driven by the creation of money by the RBZ through the real-time gross settlement (RTGS) balances.