Reserve Bank of Zimbabwe governor John Mangudya said yesterday consultations were ongoing to encourage banks to leverage on the foreign currency deposits to enhance financial intermediation for the benefit of the economy.
The central bank directed banks to start paying interest on savings and fixed deposits with effect from this month.
In a statement on the resolutions reached by the country’s Monetary Policy Committee which met on Monday, 28 June, Mangudya said the committee was satisfied with the current macroeconomic stability and the strong positive growth trajectory that is underway, a position which has also been confirmed by the International Monetary Fund, the World Bank and the African Development Bank.
The World Bank has projected growth of 3.9% and the IMF, 6%.
“The committee is pleased with the current disinflationary trajectory which has seen annual inflation further falling from 161.9% in May to 106.6% in June 2021. The Bank expects annual inflation to decline to 55% by end July 2021 and to below 25% by December 2021,” Mangudya said.
Zimbabwe had earlier said it expected inflation to drop to below 10% by the end of the year.
Mangudya said to sustain the current inflation trajectory and support the envisaged robust economic growth for 2021 and beyond, the committee had made the following resolutions:
(214 VIEWS)
The Zimbabwe Gold, ZiG, continued to firm against the United States dollar ending the week…
Zimbabwe will be issuing 7.5 kg of grain a month to each of the six…
The stability of Zimbabwe’s local currency, the Zimbabwe Gold (ZiG), is critical if the country…
More than half of Zimbabwe’s population will need food aid between this month and March…
Zimbabwe’s currency, the ZiG, kicked off the week on a positive note after firming to…
Twenty-five white Zimbabwean farmers who took their R2 billion land damages claim to the South…