Resolutions Of The MPC Meeting Held On 26 September 2025 | Full Statement

RESOLUTIONS OF THE MONETARY POLICY COMMITTEE MEETING HELD ON 26 SEPTEMBER 2025

The Monetary Policy Committee (MPC) of the Reserve Bank of Zimbabwe met on 26 September 2025 to discuss recent macroeconomic and financial developments, as well as the outlook for the economy.

The MPC noted the improved real global economic growth prospects resulting from lower effective trade tariff rates and better financial conditions. Global growth forecasts for 2025 were revised from 2.8% to 3% in the July 2025 update of the IMF World Economic Outlook.

On the domestic front, the MPC noted with satisfaction the continued price and exchange rate stability in the economy, which has persisted for one year since September 2024, and is supporting robust economic activity.

Importantly, the MPC commended the strong economic performance during the first half of 2025, with the year-on-year growth during the second quarter of 2025 estimated at 11%. The growth was underpinned by strong performances in the agriculture and mining sectors.

The robust domestic economic performance has resulted in increased foreign currency inflows into the country, mainly driven by exports of gold and tobacco.

Foreign currency inflows stood at US$10.4 billion as at 31 August 2025, compared to US$8.2 billion received during the same period in 2024, representing a 26.8% increase.

Reflecting the improved foreign currency inflows, the country’s current account of the balance of payments is expected to improve significantly, from US$501 million recorded in 2024 to US$1.3 billion in 2025, thus supporting continued exchange rate stability.

In addition to supporting the smooth functioning of the Willing Buyer Willing Seller (WBWS) interbank market for foreign exchange, the increased foreign currency inflows have contributed to the continued build-up of foreign currency reserves, which is crucial in sustaining exchange rate stability.

The country’s foreign currency reserves were about US$900 million as at 25 September 2025, up from just over US$700 million at the end of June 2025.

As such, the combination of prudent money supply management, increased foreign currency inflows, and accumulation of foreign currency reserves resulted in continued stability in inflation during the third quarter of 2025.

Monthly ZiG inflation averaged 0.6% between February and August 2025. Reflecting current low inflation pressures, the monthly inflation is expected to remain stable in the outlook period.

Annual ZiG inflation started decelerating in August 2025, with sharper declines expected during the third and fourth quarters of the year, trending downwards towards the 20% level by December 2025.

Considering the foregoing, the MPC has resolved to continue to “stay the course” of the current monetary policy stance during the next quarter to durably anchor price and exchange rate stability in the economy as follows:

• To maintain the Bank Policy rate at 35%.

• To maintain the current statutory reserve requirements for savings and time deposits in ZiG for both local and foreign currency at 15%, and for demand and call deposits for both local and foreign currency deposits at 30%.

The MPC will continue to review its monetary policy stance in line with evolving external and domestic risks to inflation and growth in the outlook period.