Zivanai Dhewa

…..as inflation continues to fall

The Monetary Policy Committee (MPC) of the Reserve Bank of Zimbabwe has made a commitment to deepen reforms that enhances growth and stability in the economy.

This was revealed through a press statement, after deliberations done on 30 April 2021 on economic and financial developments.

“The MPC also made the following resolutions to support economic activity and the current stability in the economy, through maintaining  the Bank policy rate at 40% and the interest rate on the Medium Term Accommodation Facility (MBA) at 30% per annum; Approve a facility of ZW$500 million for term finance for Micro, Small and Medium Enterprises (MSMEs) which the MSMEs will access from banks and microfinance institutions at 30% per annum for purposes of enhancing production and productivity across all the sectors of the economy.

“Reaffirmed its position to support bureaux de change with foreign exchange requirements to support Micro, Small and Medium Size Enterprises (MSMEs) which need foreign currency for their various productive requirements,” read the statement.

The Committee further noted with great satisfaction the reduction in inflation, which has further fallen from 240.1% in March 2021 to 194% in April 2021.

Furthermore, “the Committee reaffirmed its commitment to sustaining the disinflationary path to the end of the year and expects year on year inflation to go down to below 55% by July 2021,” read part of the statement.

Meanwhile, the Foreign Exchange Auction Results of 4 May 2021, remained stable at ZW$84 against the US$1.