INTRODUCTION AND BACKGROUND
1. This Monetary Policy Statement (MPS) is issued in terms of Section 46 of the Reserve Bank Act (Chapter 22:15) which requires the Governor of the Reserve Bank of Zimbabwe (the Bank) to issue a statement outlining the monetary policy stance for the subsequent six months, the reasons for the policies and an evaluation of the previous period monetary policy measures.
2. Since the last monetary policy statement issued in August 2021, the Bank has remained steadfast and resolute in its quest to foster domestic macroeconomic and financial system stability. Notwithstanding the Covid- 19 induced effects on inflation and wider macroeconomic stability, year-onyear inflation went down from a peak of 837.5% in July 2020 to 60.7% in December 2021.