Zimbabwe Inflation Falls From 82.7% To 19% In 3 Months: RBZ Monetary Policy Committee

Zimbabwe Inflation Plummets From 82.7% To 19% In Three Months: RBZ

Zimbabwe’s inflation rate has collapsed from a massiive 82.7% to just 19% in a mere three months. The Reserve Bank of Zimbabwe’s Monetary Policy Committee made the historic announcement on 1 December 2025, revealing that the local currency, the ZiG, is now stabilising at a pace not seen in decades. The committee declared that single-digit inflation is now firmly on the horizon for early 2026, a landmark event for a nation long plagued by hyperinflation.

Governor Dr. John Mushayavanhu presented the committee’s resolutions, painting a picture of rapid disinflation and growing stability. He stated that the sharp decline was a direct result of sustained monetary policy.

“The MPC welcomed the positive developments on the inflation front, which saw the dissipation of base effects and the deceleration of ZiG annual inflation from 82.7% in September to 32.7% in October and further to 19.0% in November 2025,” the statement read.

A Historic Path To Single Digits

The figures presented signal a potential end to one of the country’s most persistent economic crises. For the first time in over twenty years, officials are forecasting inflation to dip below 10%. According to the MPC, annual inflation is now expected to end 2025 between 15% and 17%, a significant improvement from earlier forecasts of 20% to 30%. The committee directly linked this success to its policy stance maintained since September 2024.

“For the first time in more than 20 years, local currency annual inflation is expected to reach single-digit levels in the first quarter of 2026,” the communiqué confirmed.

Strong Inflows Underpin New Stability

The report highlighted a surge in foreign currency reserves as a key pillar of the new stability. Total foreign currency inflows for the first ten months of 2025 surpassed US$13 billion (approx. R 234 billion), marking a more than 21% increase from the same period in 2024. These inflows have bolstered the reserves backing the ZiG to approximately US$1 billion (approx. R 18 billion), providing critical import cover. The MPC noted this has allowed the foreign exchange market to operate smoothly.

“The increase in foreign currency inflows ensured that the foreign exchange market fully met all bona-fide import and foreign payment requirements,” the statement asserted.

“Stay The Course” On Policy

Despite the positive news, the MPC has opted for a cautious approach, resolving to maintain its current tight monetary policy. The committee decided to keep the Bank Policy Rate at 35% and left statutory reserve requirements unchanged. The goal is to entrench the newfound stability and sustainably anchor inflation expectations before any normalisation.

“The MPC, therefore, reaffirmed its strong commitment to a well-calibrated and data-driven monetary policy stance to sustain the current positive real interest rates environment, which is critical for boosting demand for the ZiG, protecting the value of savings and discouraging speculative borrowing,” Dr. Mushayavanhu explained.

The committee also linked this progress to the broader national vision, stating the developments show “bold strides” towards meeting the conditions for transitioning to a single currency by 2030, as outlined in the National Development Strategy 2.