MPC resolve to maintain economic stability

by | May 6, 2021 | Business, Local News | 0 comments

Nevanji Munyaradzi Chiondegwa

The Reserve Bank of Zimbabwe (RBZ) has reaffirmed its commitment to continue with the conservative monetary policy stance to ensure that the current price stability is maintained.
This was communicated after the MPC`s routine meeting on April 30.

Top of the agenda, was the inflation rate which appears to be stable growing at a receding rate.
The MPC has promised to sustain the disinflationary path to end of year.

To maintain the current economia stability and support economic activity, the MPC also resolved to maintain the Bank policy rate at 40 percent and the interest rate on the Medium Term Accommodation Facility (MBA) at 30 percent per annum.

The Bank policy rate is the rate that is used by the Central Bank to implement or signal its monetary policy stance.

To support economic growth and in recognition of the role of Micro, Small and Medium Enterprises (MSMEs) as major economic growth drivers, the MPC approved a ZW$500 million term finance. They will access this via bank and microfinance institutions at 30 percent per annum.

The loans will be for production and productivity across all economic sectors.
The bureau de change will be supported with foreign currency which will be accessed by MSMEs which require it for various productive purposes.