By Davison Vandira
ECONOMISTS have called on monetary authorities to strictly adhere to the tight monetary policy stance in the wake of increased inflationary pressures that may threaten economic progress registered over the past two years.
The call by Economists to pursue inflation insulating measures has been necessitated largely by imported inflation mainly through raw materials, inputs and fuel.
It is against this background of inflationary pressures affecting the economy that economic observers are optimistic that authorities can leverage on monetary policy autonomy and closely monitor excessive reserve money growth which has been propelling adverse inflation expectations by economic agents.
According to Economists, the pass through effects of exchange rate instability are perpetuating the undesirable increase in inflation, hence the urgent need to strictly pursue the announced tight monetary policy stance.
“The current increase in inflation level should be dealt with to preserve economic gains that the economy has registered in the recent past including being resilient to shocks like COVID-19,” said Development Economist, Dr Prosper Chitambara.
“The obtaining situation with respect to inflation movement is worrisome and needs corrective measures for the country to be able to meet its economic objectives, hence maintaining a tight monetary policy becomes imperative to sustain the country’s economic journey especially the second half of this year,” added another Economist,Mr Titus Mukove.
Zimbabwe’s Fiscal and Monetary authorities are implementing a number of policy initiatives to strengthen the macroeconomic environment for enhanced stability.
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