By Davison Vandira
INDUSTRIALISTS have endorsed the positive inflation outlook for the rest of the year underpinned by a strict monetary policy stance and enhanced exchange rate stability through curtailing money supply growth.
The Reserve Bank of Zimbabwe’s positive inflation outlook of ten percent month on month is centred on strict adherence to minimum capital requirements by banks, curbing speculative borrowing through high interest rates, observing statutory reserves and riding on the high capability of Mosia Tunya Gold Coins in mopping up excess liquidity in the market.
With the RBZ expecting to enhance exchange rate stability by leveraging on these key inflation insulating measures to preserve monetary policy autonomy, industrialists are looking forward to the future with renewed confidence.
“The current macroeconomic stability is encouraging the exciting part is the expected inflation outlook for the rest of the year and as industry this will help in terms of planning and running business in general,” said Mr Kipson Gundani, CEO Africa Roundtable Executive Director.
“The obtaining situation with respect to the inflation trajectory is commendable from an industrialist’s perspective as over the past two years the main challenge in the economy has been instability and its therefore a positive development when fundamentals are okay,” noted an Industrialist, Mr Mike Kamungeremu.
Industrialists have also been charmed by the country’s resilience against imported inflation whose effects have decelerated to manageable levels, thus allowing the country to pursue its economic objectives.
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