The
Monetary
Policy
Committee
(the
MPC)
of
the
Reserve
Bank
of
Zimbabwe
(the
Bank)
met
on
1
December
2023
and
deliberated
on
recent
macroeconomic
developments
in
the
economy
and
the
2024
National
Budget
Statement
presented
by
the
Honourable
Minister
of
Finance,
Economic
Development
and
Investment
Promotion
on
30
November
2023.
The
MPC
affirmed
its
commitment
to
complementing
the
pronounced
fiscal
measures
which
focused
on
domestic
resource
mobilisation
amid
global
credit
squeeze
and
increasing
global
borrowing
costs.
The
MPC
also
committed
to
safeguarding
the
current
macroeconomic
stability
by
staying
the
course
of
tight
monetary
policy
while
taking
measures
to
cushion
the
economy
from
the
attendant
global
risks
and
El
Nino
effects.
The
MPC
noted
the
continued
exchange
rate
and
price
stability
obtaining
in
the
economy
despite
the
elevated
emerging
global
risks.
The
MPC
also
noted
the
strong
foreign
currency
generation
capacity
of
the
country
as
evidenced
by
a
2.3%
increase
in
foreign
currency
inflows
to
US$9.44
billion
as
at
31
October
2023,
compared
to
US$9.23
billion
generated
during
the
same
period
in
2022.
The
foreign
currency
inflows
have
been
supported
by
Diaspora
remittance
flows
which
have
consistently
surpassed
Foreign
Direct
Investment
(FDI),
portfolio
investment
and
Official
Development
Assistance
since
2009.
Diaspora
remittances
alone
contributed
16%
of
the
country’s
foreign
currency
inflows
as
at
31
October
2023.
Thus,
the
MPC
underscored
the
need
to
leverage
Diaspora
remittances
for
development
as
part
of
a
broader
package
of
measures
to
cushion
the
economy
from
recurring
global
shocks.
Considering
the
prevailing
macroeconomic
environment,
the
MPC
resolved:
1)
to
maintain
the
current
Bank
Policy
rate
at
130%
and
the
Medium-term
Bank
Accommodation
Facility
interest
rate
for
the
productive
sectors,
including
individuals
and
MSMEs,
at
75%,
which
rates
will
be
reviewed
in
line
with
inflation
developments
from
time
to
time;
and