Tight monetary policies to anchor exchange rate stability: RBZ

By ZBC Reporter

THE Reserve Bank of Zimbabwe Monetary Policy Committee (MPC) is expecting tight monetary measures to anchor exchange rate stability.

Resolutions of the Monetary Policy Committee meeting held this Friday indicate that progress has been made on stabilising the parallel market exchange rates since last month.

The committee noted with satisfaction efforts being made by Government to facilitate broad-based use of the Zimbabwe dollar.

Concern was however raised over resurfacing inflationary pressures within the economy during the just-ended month on the back of a rise in global administrative prices.

The developments according to the committee include an increase in global prices of oil, gas, fertiliser and crude cooking oil, products of which Russia and Ukraine are the major producers.

Members of the committee chaired by the central bank Governor, Dr John Mangudya, therefore, resolved to continue focusing on policies to curb inflationary pressures while consolidating current economic gains.

The committee also resolved to maintain the bank policy rate at 60 percent and medium-term bank accommodation facility at 40 percent due to adjustments in the global economic outlook trends.

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