Zimbabwe Central Bank Holds Policy Rate At 35% As Inflation Falls

Friday 27th February 2026

By inAfrika Newsroom

Zimbabwe policy rate held remained the central bank’s stance on Friday as authorities kept the main interest rate unchanged at 35%, saying policy must stay tight to anchor inflation after it fell to single digits in January for the first time in more than three decades.

Reserve Bank of Zimbabwe governor John Mushayavanhu told a press conference that the priority was to keep inflation anchored before considering a looser stance. Reuters reported him saying the policy rate would remain at 35% to ensure inflation stability.

Zimbabwe’s recent inflation profile has been shaped by currency instability, fiscal pressures, and supply constraints that repeatedly fed into rapid price rises over the years. The single-digit inflation milestone, if sustained, would be a significant stabilisation signal for households and businesses, particularly in a market where long-term pricing has often been difficult.

The central bank’s decision also reflects a common stabilisation tension: keeping rates high can support currency and inflation control, but it can also constrain credit and raise the cost of capital for firms. In Zimbabwe’s case, authorities have repeatedly prioritised macro stabilisation, aiming to restore confidence in monetary policy and reduce volatility that can deter investment.

Zimbabwe policy rate held: key details

Reuters reported the central bank held its main interest rate at 35% and framed the decision as a commitment to keep inflation anchored after the January drop to single digits.

Markets will closely watch whether inflation remains low in coming months, especially as seasonal food prices, exchange-rate movements, and fuel import costs can quickly shift the inflation path. The credibility of stabilisation also depends on broader policy coordination, including fiscal discipline and the predictability of key administrative price decisions.

For companies, stable inflation can improve planning on wages, inventory, and pricing, while a tight rate environment can slow expansion financed through credit. For the government, inflation stability can reduce pressure for rapid spending adjustments and can improve confidence in budget assumptions.