gtag('config', 'UA-12595121-1'); Zimbabwean business warms up to new monetary policy – The Zimbabwe Mail

Zimbabwean business warms up to new monetary policy

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HARARE – Zimbabwe’s private sector has embraced the latest monetary policy statement for seeking to consolidate financial stability for economic development.

The Monetary Policy Statement released by the Reserve Bank of Zimbabwe this Thursday seeks to cement financial stability and align targets with the 2021 budget in respect of Inflation and economic growth.

The RBZ will continue with a conservative money supply growth policy to achieve its inflation target of below 10 percent by the end of the year.

To kick start the process of achieving this economic milestone, the central bank has raised interest rates to discourage speculative borrowing and in the process channelling the capital to productive purposes, a development welcomed by industry.

“As the Confederation of Zimbabwe Industries we are warming up to the monetary policy to support the pro productive stance that was adopted by the fiscal policy,” said Henry Ruzvidzo, the president Confederation of Zimbabwe Industries.

“Our main worry as industry is inflationary pressure on account of money supply growth which hinders efficient production within the economy,  hence we appreciate  the central bank’s gesture of putting measures to keep money supply growth under strict control,” said Christopher Mugaga, the Zimbabwe National Chamber of Commerce CEO.

The Reserve Bank of Zimbabwe has also made a firm commitment to settle auction allotments within 2 weeks, a move expected to further strengthen confidence, among economic agents.

From the data released by the central bank, the country will have about 1.1 billion US dollars in surplus revenue this year.