The Reserve Bank of Zimbabwe’s Monetary Policy Committee (MPC) has announced a significant cut in the key interest rate, reducing it from 30 percent to 27.5 percent, effective immediately. This decision, made during the MPC’s meeting on Monday, September 28, 2026, is attributed to a benign inflation environment and robust macroeconomic performance.
This latest reduction marks a cumulative 7.5 percentage point decrease in policy rates since June 2026. In addition to the primary rate cut, the interest rate on the Targeted Finance Facility (TFF) has also been lowered from 15 percent to 12.4 percent, with banks’ all-inclusive on-lending rate to productive sectors now capped at 22.5 percent. Reserve Bank Governor Dr. John Mushayavanhu stated that annual ZiG inflation had dropped to 2.9 percent in August 2026, its lowest level since 1980, before a modest rise to 3.7 percent in September due to higher international oil prices.
Key Players Involved
- Reserve Bank of Zimbabwe’s Monetary Policy Committee (MPC): The body responsible for making the decision to cut the key interest rate.
- Dr. John Mushayavanhu: The Governor of the Reserve Bank of Zimbabwe, who announced the decision.
Event Timeline
- September 28, 2026: The Reserve Bank of Zimbabwe’s Monetary Policy Committee meets and announces the immediate cut in the key interest rate.
- June 2026: Marks the beginning of a cumulative 7.5 percentage point reduction in policy rates.
