Reserve Bank of Zimbabwe rules out hyperinflation

Reserve Bank of Zimbabwe rules out hyperinflation
Published: 12 November 2017 (1030 Views)
ZIMBABWE'S economy will not revert back to the hyperinflation environment despite the recent unjustified price increases on basic commodities and services in the market, the Reserve Bank of Zimbabwe has said.

The recent price increases induced panic in the market after some basic commodities such as cooking oil shot up by more than 100 percent, triggered by some irresponsible social media reports that Zimbabwe would face food shortages.

The country abandoned its local currency at the height of inflation in 2008 after prices of basic goods and services had risen to unprecedented levels.

Speaking during the Parliamentary Pre-Budget Seminar here on Thursday, RBZ Deputy Governor Dr Kupukile Mlambo, said:

"We are having concerns through the newspapers that prices are going up and that we are headed for another hyperinflation period. I want to allay your fears Honourable Members of Parliament that we are no way near the hyperinflation.

Using the standard methods and internationally approved methods of calculating inflation, our inflation as of September is 0.8 percent.

So generally when we look at our inflation it is still below the Sadc levels of three percent and our forecast is that by the end of the year we will still be below that range."

Dr Mlambo said although authorities were not worried about inflation it was imperative for them to keep an eye on it. On financial stability, he said, the financial services sector was sound as indicated by a number of positives.

"For example, in the last two years, no bank has failed and we have also reduced Non-Performing Loans (NPLs) from 21 percent in September 2014 to 8,6 in October 2017," he said.

Dr Mlambo added that banking sector deposits were on a growth trajectory to $7,6 billion as of September 2017.

A few years ago, the Central Bank set up the Zimbabwe Asset Management Company (Zamco) to mop about $800 million NPLs in commercial banks to improve the banking institutions balance sheets.

The monetary authority has highlighted that Zamco would not mop up loans that were recklessly issued by the banking institutions.

- Sunday News

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

'Mudzingwa, Munawa not spent forces'

by Staff reporter | 21 January 2018 | 92 Views

'Bond notes removal will stabilise prices'

by Staff reporter | 21 January 2018 | 194 Views

Ex-cop jailed for impersonation

by Staff reporter | 21 January 2018 | 118 Views

Female fraudster poses as Zimra official

by Staff reporter | 21 January 2018 | 118 Views

Mohadi speaks reconciliation

by Staff reporter | 21 January 2018 | 102 Views

Bulawayo residents threaten to sue town clerk

by Staff reporter | 21 January 2018 | 75 Views

Bosso Electoral Committee begins verification of nominees

by Staff reporter | 21 January 2018 | 57 Views

Mnangagwa fails to 'coup' cash crisis

by staff reporter | 21 January 2018 | 72 Views

Mnangagwa plans economic revival

by Bloomberg | 21 January 2018 | 65 Views

'Postponement of polls out of the question'

by Staff reporter | 21 January 2018 | 45 Views

Mnangagwa embarks on a charm offensive

by Staff reporter | 21 January 2018 | 82 Views

Who should be afraid of elections MDC-T or Zanu-PF?

by Bishop | 21 January 2018 | 91 Views

Majaivana unlikely to visit Zimbabwe anytime soon

by Staff reporter | 21 January 2018 | 73 Views

'Fake prophecies' haunts Makandiwa

by Staff reporter | 21 January 2018 | 111 Views

Mnangagwa takes Zimbabwe economic gospel to Davos

by Staff reporter | 21 January 2018 | 65 Views

Mnangagwa runs the rule on Cabinet

by Staff reporter | 21 January 2018 | 72 Views

Grace Mugabe's fancy vehicles in freak accident?

by Staff reporter | 21 January 2018 | 116 Views

MPs to get cars for free

by Staff reporter | 21 January 2018 | 69 Views

Tsvangirai captured?

by Staff reporter | 21 January 2018 | 96 Views

Thomas Mapfumo heads to Zimbabwe

by Staff reporter | 21 January 2018 | 87 Views

Vendors prepared to fight the soldiers

by Staff reporter | 21 January 2018 | 111 Views

Mnangagwa, Chiwenga rift exposed

by Staff reporter | 21 January 2018 | 175 Views

Mnangagwa takes Zim pitch to the world

by Staff Reporter | 21 January 2018 | 67 Views

Is Jah Prayzah strangling his own baby?

by Staff Reporter | 21 January 2018 | 133 Views

SA construction firm eyes Matabeleland venture

by Staff Reporter | 21 January 2018 | 56 Views

Mnangagwa sticks to his word, urges diaspora to register to vote

by Staff Reporter | 21 January 2018 | 86 Views

Sex worker on the run after stabbing a client

by Simbarashe Sithole | 21 January 2018 | 88 Views

Zanu PF strongholds have already rigged elections - analyst

by Stephen Jakes | 21 January 2018 | 53 Views

G40 will rally for Mujuru during elections - philosopher

by Stephen Jakes | 21 January 2018 | 91 Views

Setting the record straight on the political future of Mthwakazi

by staff Reporter | 21 January 2018 | 47 Views

ZimRights scales up BVR mobilisation

by Stephen Jakes | 21 January 2018 | 43 Views

Mnangagwa's final letter to Mugabe

by Staff Reporter | 21 January 2018 | 101 Views

Chiyangwa's fight for life

by Stephen Jakes | 21 January 2018 | 129 Views

Mnangagwa faces internal revolt over polls

by Staff Reporter | 21 January 2018 | 72 Views

Vendors give govt 48-hour ultimatum to create jobs

by Staff Reporter | 21 January 2018 | 82 Views