The Reserve Bank of Zimbabwe’s Monetary Policy Committee (MPC) kept the Bank Policy Rate at 35%, saying it would stay the course to limit second-round effects from recent fuel price increases, keep inflation expectations anchored and preserve low, stable single-digit inflation alongside firm growth prospects. The rate was also held at 35% in June, September and December 2025. The MPC also left statutory reserve requirements unchanged at 15% for savings and time deposits and 30% for demand and call deposits in both local and foreign currency. Annual inflation slowed to 3.85% in February 2026 and is expected to remain below 5% in March, while month-on-month inflation is seen rising slightly in March to May before returning to steady-state levels from June; the MPC said the economy grew by above 6.6% in 2025 and that growth prospects for 2026 remain strong despite a mid-season dry spell in February. Total foreign-currency inflows rose to USD 3.35 billion in the first two months to February 2026 from USD 1.89 billion a year earlier, helping rebuild foreign-exchange reserves, support foreign-exchange market stability and back the ZiG. The MPC said the recent oil price shock, driven by geopolitical tensions in the Middle East, is a supply-side shock that monetary policy cannot easily manage, and it signalled it will remain vigilant and ready to adjust policy swiftly if needed.
Reserve Bank of Zimbabwe holds Bank Policy Rate at 35%
The Reserve Bank of Zimbabwe’s Monetary Policy Committee kept the Bank Policy Rate at 35% and left statutory reserve requirements unchanged at 15% for savings and time deposits and 30% for demand and call deposits in local and foreign currency, saying it will stay the course to contain second-round effects from fuel price increases, anchor inflation expectations and preserve low, stable single-digit inflation. The committee said annual inflation slowed to 3.85% in February 2026 and is expected to remain below 5% in March, while stronger foreign-currency inflows of USD 3.35 billion in the first two months of 2026 helped rebuild reserves, support foreign-exchange market stability and back the ZiG.