Analysis Of The 2023 Mid - Term Monetary Policy Statement Review Impact On Business Competitiveness - National Competitiveness Commission

Analysis Of The 2023 Mid – Term Monetary Policy Statement Review Impact On Business Competitiveness

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The Governor of the Reserve Bank of Zimbabwe, Dr. J. P. Mangudya presented the 2023 MTMPS on 09 August 2023 with the theme, “STAYING THE COURSE TO PRICE STABILITY”. The theme is timely as the economy is currently on the right track toward sustained price and exchange rate stability.

It guarantees sustainability on the right path of progress attained thus far on the price and financial stability fronts.
The MTMPS evaluates monetary policy stance and policies pursued by the Reserve Bank of Zimbabwe in the 1st half of 2023 and outlines the monetary policy stance to be pursued up to the end of the year.

To this end, the Commission provides an analysis on the anticipated impact of the 2023 Mid-Term Monetary Policy Statement (MTMPS) Review on business and overall competitiveness of Zimbabwe.

Analysis of the Mid-Term Monetary Policy Review on Competitiveness

The World Economic Forum (WEF) in its series of Annual Global Competitiveness Reports (AGCR) classified “macroeconomic environment” pillar as a basic requirement sub-index for competitiveness. This means that macroeconomic environment forms the foundation of a competitive economy.

Against this backdrop, the 2023 MTMPS policy was presented under the theme ‘Staying the Course to Price Stability” which clearly attest that the economy is on the right track to price and exchange rate stability and calls for the need to stay the course of the right policy mix.

To “Stay the course to price stability”, the Monetary Authorities have assured the nation that they will continue to implement a tight monetary policy stance for the next six months to sustainably anchor inflation and exchange rate expectations.

The tight monetary policy path will be anchored on aggressive interest rate and Open Market Operations (OMO) measures, among others:

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2023 Mid – Term Monetary Policy Statement Review

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