Source: RBZ is committed to a tight monetary policy-IH Securities – herald
Business Reporter
THE 2026 Monetary Policy Statement demonstrates continuity in tight monetary management, as the Reserve Bank of Zimbabwe (RBZ) gradually deepens ZiG usage and lowers banking costs, analysts say.
The central bank introduced the gold and foreign currency-backed ZiG in April 2024 to tame stubborn domestic currency inflation, which has since dropped to single-digit levels for the first time in over three decades.
To entrench stability, the RBZ last week maintained its Bank Policy Rate at 35 percent, statutory reserve requirements at 30 percent for demand and call deposits and 15 percent for savings and time deposits.
The firm monetary policy stance comes amid rapid disinflation and exchange rate stability.
According to stockbroking firm IH Securities, broad money supply growth remained contained under disciplined reserve money targeting.
“Total broad money stood at ZiG108,09 billion as of December 2025, rising 36,98 percent from ZiG78,91 billion in December 2024,” the firm noted.
IH said that the RBZ attributed the controlled money supply to tight control of reserve money, with the local-currency component of broad money averaging 2,7 percent month-on-month growth in 2025, far below levels achieved in previous currency regimes.
Besides the unchanged headline policy rate, the 2026 monetary policy pivots towards practical reforms aimed at encouraging local currency usage.
The RBZ introduced a ZiG-denominated term deposit facility with a minimum 90-day tenor, rolled out upgraded “Big 5” ZiG banknote series and increased the value of daily transactions for mobile money, ZIPIT and cash withdrawals.
After whittling down its own RTGS service fees to banks, the RBZ cut bank charges, while some were capped or removed.
IH Securities believes these measures fine-tune liquidity conditions without altering the overarching restrictive posture.
“In our view, the 2026 measures tilt marginally towards improving transaction liquidity in the formal system, but they do not change the core direction of tight monetary management,” the firm said.
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