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Monetary
Policy Statement
Gideon Gono, Governor of the Reserve Bank of Zimbabwe
July 28, 2011
http://www.rbz.co.zw/pdfs/2011%20MPS/MPS%20July%202011%2028.07.pdf
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1. Introduction
and background
1.1 This Monetary
Policy Statement is issued in terms of Section 46 of the Reserve
Bank of Zimbabwe Act (Chapter 22:15), which requires that the
Monetary Authorities set out the country's Monetary Policy
for the next 6 months.
1.2 Since my last Statement
in January 2011, significant gains have been made on the economic
and inflation fronts, with annual inflation falling progressively
over the last 5 months, from 3.5% in January 2011, to 2.5% in May.
1.3 Monthly inflation
has also slowed down to 0.1% in May 2011, having peaked at 1% in
January 2011. Deceleration in monthly inflation is significant,
in that it suggests sustained dissipation of inflationary pressures
in the economy, barring unanticipated external shocks.
1.4 The gains on inflation
enabled industry to plan and expand production, as evidenced by
estimated real economic growth of 8.1% in 2010, and a further projection
of 9.3% in 2011.
1.5 Anticipated growth
in the global economy, in 2011, coupled with continued firming of
international commodity prices, should further boost domestic production,
with further spin-off benefits on employment levels, enhanced per
capita incomes and improved standards of living.
1.6 These positive outcomes
have rested on the continued resilience of the country's solid
banking and financial sector, which has remained generally safe
and sound, notwithstanding isolated cases of magnified vulnerability
due to near-fraudulent behavior by some errant bank management.
1.7 The Central Bank,
notwithstanding its serious undercapitalization, will remain vigilant
and resolute in ensuring that the country's banking system
is freed of all man-made blemishes.
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