In February, Zimbabwe’s inflation rate was 0.5%, well below the 5% limit set by the government.

In an exclusive interview with The Herald, Ncube asserted that the country’s low inflation rate is “not artificial.” He said:

Inflation is what it is. But also the accusation is that there’s no money in the market. That is what is called a tight monetary policy; that is actually the technical definition.

So, right now, we have a policy that is tight in order to manage inflation in the first place. That is the objective; so it’s not artificial.

The level of inflation is commensurate with the ZIG money supply that is at hand, and it is appropriate that the Reserve Bank is conducting such a tight monetary policy.

That monetary policy is complemented, also, by a tight fiscal policy because what you don’t want is for Government spending to run away, getting out of control to a point where we have to monetise that excess budget deficit.

Ncube said that a strict fiscal and monetary policy work together, and people should be pleased that the exchange rate and inflation are stable. He said:

That is what we have right now and that is why the ZiG is stable in the first place. The economy and citizens have been crying out for a stable macroeconomic environment and that is what we are delivering right now.

 So people should be pleased that at least, we are delivering what is expected of us as economic policymakers.

They demanded stability; it allows them to plan, it gives our domestic currency, ZIG, value. You can now save in it, you can transact in it, you restore value characteristics.

More: The Herald