SECTION ONE
INTRODUCTION

1. This Monetary Policy Statement (MPS) is issued in terms of Section 46 of the Reserve Bank of Zimbabwe Act [Chapter 22:15] and details evaluation of the current monetary policies of the Bank and outlines the new policy
measures to be pursued by the Bank in the next 6 months with a view to achieving price and financial sector stability.
2. The MPS comes at a time when the global economy is projected to record a slowdown in economic growth as a result of tight monetary conditions as central banks fight inflation, declining investment, lagged effects of the
Covid-19 pandemic and global supply chains disruptions and rising commodity prices emanating from the Russia-Ukraine conflict. In its January 2023 World Economic Outlook update, the International Monetary Fund (IMF) projects that global Gross Domestic Product (GDP) growth in 2023 will slow to 2.9 percent, compared to a 3.4 percent 2022. The adverse global developments are likely to have spill-over effects on the domestic economy through trade, imported inflation and financial linkages.