HARARE, June 17 (Xinhua) -- Zimbabwean monetary authorities have decided to maintain the bank policy rate at 35 percent to ensure economic stability amid global trade tensions, Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu said on Tuesday.
In a statement released following a meeting of the RBZ Monetary Policy Committee (MPC) held on Monday, Mushayavanhu said the central bank's tight monetary policy stance has resulted in sustained stability in the exchange rate and inflation during the second quarter of 2025.
As a result of the positive domestic macroeconomic developments, the MPC resolved to maintain the bank policy rate at 35 percent to maintain price and exchange rate stability, Mushayavanhu added.
The bank policy rate was raised from 20 percent to 30 percent in September last year when the central bank devalued the local currency, Zimbabwe Gold, by 43 percent following exchange rate volatility.
"The MPC noted the broad-based deceleration of global growth occasioned by escalating trade tensions, geo-economic fragmentation, regional and international conflicts, and policy uncertainty," he said. "Considering the challenging and rapidly evolving risks to the global growth outlook, the MPC advised the RBZ to maintain a sufficiently tight monetary policy stance."
He noted that despite uncertainty in the external environment, Zimbabwe's economy continues to show resilience and is projected to grow by 6 percent in 2025, underpinned by a recovery in the agricultural sector.
Other sectors are also expected to record positive growth performance, benefiting from the prevailing price and exchange rate stability, he said.
Last week, the Parliament of Zimbabwe called for a reduction in bank charges and the bank policy rate to boost public confidence in the banking sector and stimulate lending to the country's productive sectors.
