2022-06-24 Reserve Bank Press Statement on the Deliberations of the Monetary Policy Committee [MPC]

The Monetary Policy Committee (MPC) of the Reserve Bank of Zimbabwe (the Bank) met on 24 June 2022 and deliberated on macroeconomic and financial developments in the economy. The MPC also deliberated on the progress made in the implementation of measures announced by His Excellency, the President of the Republic of Zimbabwe on 7 May 2022, which measures, the MPC noted, had begun to bear fruit, with the convergence of the auction and the willing-buyer willing-seller foreign exchange rates.
The MPC expressed great concern on the recent rise in inflation, which increased to 30.7% on a month-on-month basis for June 2022 thereby increasing the year-on-year inflation for June 2022 to 191.6%. The Committee noted that the increase in inflation was undermining consumer demand and confidence and that, if not controlled, it would reverse the significant economic gains achieved over the past two years. In that regard, the MPC resolved to put in place the following measures to align the interest rates with the inflation developments, enhance circulation of foreign exchange and introduce an investment instrument to assist holders to store value in gold coins:

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