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 on Monday, September 28, 2026, follows a period of benign inflation and strong macroeconomic performance, marking a cumulative 7.5 percentage point reduction in policy rates since June 2026.
Reserve Bank Governor Dr. John Mushayavanhu stated that annual ZiG inflation decreased to 2.9 percent in August 2026, the lowest since 1980, before a slight increase to 3.7 percent in September due to higher international oil prices. The central bank also noted that robust export earnings and diaspora remittances have bolstered Zimbabwe’s current account surplus, projected to expand to US$3.5 billion in 2026 from US$2.1 billion in 2025. Foreign currency reserves backing the ZiG have surged to over US$2 billion in September 2026, providing approximately two months of import cover and supporting the exchange rate within the ZiG25–27 per US$1 trading band.
Key Players Involved
- Reserve Bank of Zimbabwe (RBZ): Implemented the interest rate cut and reported on economic performance.
- Dr. John Mushayavanhu: RBZ Governor, who announced the decision.
Event Timeline
- September 28, 2026: RBZ Monetary Policy Committee meets and announces the interest rate cut.
- August 2026: Annual ZiG inflation falls to 2.9 percent.
- September 2026: Foreign currency reserves exceed US$2 billion.
