Published: 04 December 2025

The Reserve Bank of Zimbabwe (RBZ) has maintained the bank policy rate at 35% following the latest Monetary Policy Committee (MPC) meeting held on December 1, 2025, as authorities continue efforts to support local currency stability and rein in inflation.

The policy rate - the benchmark interest charged by the central bank when lending to commercial banks - influences borrowing costs across the economy. Higher rates typically discourage borrowing and help contain inflationary pressures, while lower rates stimulate lending and economic activity.

RBZ Governor Dr John Mushayavanhu said the committee agreed to retain the current monetary stance to sustain progress made in suppressing inflation.

"In line with the NDS 2 objectives and the need to durably anchor inflation expectations and support sustained disinflation, the MPC has resolved to stay the course of the current monetary policy stance by maintaining the Bank Policy rate at 35%; and to maintain the current statutory reserve requirements for savings and time deposits at 15%, and at 30% for demand and call deposits in both local and foreign currency," he said.

Zimbabwe's policy rate remains among the highest in the region. In comparison, South Africa's stands at 7%, Namibia at 6.5%, while Zambia - one of the closest in range - sits at 14.25%. The RBZ, however, insists the high rate is necessary to discourage speculative borrowing and reduce parallel market pressures that destabilise the exchange rate.

The MPC also reported significant progress in reducing inflation, with annual ZiG inflation dropping from 82.7% in September to 32.7% in October, before falling to 19.0% in November.

Dr Mushayavanhu said annual inflation is now projected to end 2025 between 15% and 17%, lower than the earlier estimate of 20–30%.

"For the first time in more than 20 years, local currency annual inflation is expected to reach single-digit levels in the first quarter of 2026," he added.

The sustained disinflation trend, the RBZ believes, indicates that tight monetary controls remain essential to consolidating price stability and strengthening confidence in the domestic currency.
- newzimbabwe

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