The Reserve Bank of Zimbabwe (RBZ) has reduced its policy interest rate from 35 per cent to 30 per cent, citing low and stable inflationary pressures in the economy.
Announcing the decision on Tuesday, June 16, RBZ Governor John Mushayavanhu said the move reflects a structural shift in inflation trends rather than a loosening of monetary policy. He explained that the Monetary Policy Committee (MPC) would continue to assess economic conditions at each meeting and adjust policy measures based on developments in key macroeconomic indicators.
The Central bank also reaffirmed its commitment to maintaining price stability while supporting economic growth, noting that it remains alert to potential risks that could affect inflation and broader economic performance. The rate reduction follows a significant decline in Zimbabwe’s annual ZiG inflation rate, which dropped from 95.8 per cent in July 2025 to 4.4 per cent in May 2026.
Inflation measured in U.S. dollars has also remained relatively stable, hovering around 2 per cent since the start of 2026. The latest decision is expected to support lending and economic activity as authorities seek to consolidate recent gains in inflation control.