Our measures are working – RBZ

Our measures are working – RBZ

Tateguru Tv Writer

The Reserve Bank of Zimbabwe (RBZ) says the cocktail of measures they introduced, coupled with Government strategies to arrest inflation and runaway prices is working.
In a statement, RBZ Governor Dr John Mangudya said when the Monetary Policy Committee held its most recent meeting, they agreed that the measures, which include increasing the interest rate up to 200 percent and introducing the Mosi-Oa-Tunya gold coins as a store of value have seen a decline in month-on-month inflation.
“With month-on-month inflation having declined from 30.7% in June 2022 to 25.6% in July 2022, the MPC noted that the progressive decline will continue in the outlook period as a result of the tight monetary policy stance being pursued by the Bank,” said Dr Mangudya.
Dr Mangudya said disinflation trend will continue as the effects of the numerous measures taken become more profound.
“The MPC further noted that whilst monthly inflation is expected to continue to decelerate during the outlook period, annual inflation will continue to increase up to September 2022 as a result of the lower base effect in 2021.
In view of the said developments and outlook, the MPC resolved to maintain the interest rates at current levels. The tight monetary policy stance would be buttressed by the favourable uptake of gold coins which were introduced in the economy on 25 July 2022 as an alternative stable financial product for store of value,” said Dr Mangudya.
It appears there has been good uptake on the recently introduced gold coins, which were introduced by the RBZ as a way of minimizing reliance on the US dollar as a store of value,
“A total of 1500 gold coins were sold by the Bank’s agents during the first week of their release into the market, with 85% having been bought in local currency and the balance of 15% in foreign currency. An additional 2000 gold coins will be released into the market during the week commencing 1 August 2022,” said Dr Mangudya.