Monetary Policy Committee

The Reserve Bank of Zimbabwe Monetary Policy Committee is a team that renders an advisory role to the central bank. It is an independent board, chaired by the RBZ governor, but comprises deputy governor or deputy governors, as the case may be, deputy chairperson of the RBZ and not less than five or more than seven other persons appointed by the President in consultation with the Minister of Finance.

According to the RBZ Act, the committee should submit its findings to the board of the central bank for information purposes only. The Act also requires committee members to have sound knowledge, experience or expertise in finance, banking and fiscal or monetary policies.^[1]

Background

The first Monetary Policy Committee was appointed by Professor Mthuli Ncube on 10 September 2019. It was set up in terms of the Reserve Bank of Zimbabwe Act Section 29B, and in consultation with Emmerson Mnangagwa.

Role

The Monetary Policy Committee was set up to determine the monetary policy of Zimbabwe, including the setting of limits on open market operations by the Reserve Bank and ensuring price stability as defined by the Government’s inflation target in the national budget.

The committee also determines interest rates in line with the Government’s economic policies and targets for growth and employment creation as well as other monetary policy functions, as the finance minister may prescribe by way of regulations.^[2]

2019 Committee

The first Monetary Policy Committee consisted of:

John Mangudya (Chair)

Eddie Cross

Professor Ashok Chakravarti

Kumbirayi Katsande

Douglas Munatsi

Professor Theresa Moyo

Marjorie Ngwenya

Dr Kuphukile Mlambo and

Dr Jesimen Chipika^[3]

February 2021 Committee

The committee that was appointed in September 2019 was dissolved with effect from 31 January 2021 as a result of the appointment of most of its members to various entities which were deemed by the RBZ to be in conflict with the operations of the central bank and the Monetary Policy Committee. Mthuli Ncube appointed five new members in February 2021. The new committee members were:

Professor Albert Makochekanwa

Persistence Elison Gwanyanya

Dr Daniel Makina

Dr Charity Jinya and

Mathilda Dzumbunu^[2]

References

↑ Mthuli appoints monetary policy team, The Herald, Published: September 12, 2019, Retrieved: February 22, 2021
↑ ^2.0 ^2.1 Treasury appoints new monetary policy committee members, The Chronicle, Published: February 22, 2021, Retrieved: February 22, 2021
↑ Prosper Ndlovu, Advisory team for RBZ, The Chronicle, Published: September 12, 2019, Retrieved: February 22, 2021