This was said by the Reserve Bank of Zimbabwe’s Monetary Policy Committee in a statement yesterday.
It said the measures had started paying off with month-on-month inflation dropping from 74.5% in June to -15.3% in July while annual inflation dropped from 175.8% to 101.3%.
“The MPC also noted that economic fundamentals are strong to sustain the current stability, as reflected by the robust economic growth of 5.3% expected in 2023, a favourable balance of payments position and fiscal sustainability,” the statement said.
“The strong economic fundamentals, coupled with stability in prices, will be critical in preserving the value of the domestic currency and enhancing confidence in the economy. In view of the current positive inflation and exchange rate developments, the MPC resolved to stay the course of the current tight monetary policy stance and allow time for the current measures to take the full course of their impact on the dual currency economy.
“The MPC is strongly committed to remaining watchful of any potential shocks and putting in place appropriate safeguard measures to ensure that the economy remains on track to achieving price and exchange rate stability to support the strong economic fundamentals.”