Zimbabwe’s central bank is shifting its monetary policy focus from a tight stance to one prioritising careful management of the money supply, Bloomberg reported on Monday.

The move comes as inflation shows signs of slowing. Annual consumer prices eased to 15 percent in December from 19 percent in November, while monthly inflation rose just 0.2 percent, Bloomberg noted. The central bank expects this trend to continue, projecting inflation could fall to single digits over 2026.

Businesses have raised concerns that borrowing costs in the country remain “potentially prohibitive,” the bank said, though it did not specify how interest rates might adjust. Last month, the benchmark rate was held at 35 percent to maintain downward pressure on prices and support the ZiG, Zimbabwe’s gold-backed currency launched in 2024 following earlier failed attempts to establish a stable local unit.

In addition to inflation management, the central bank emphasised its goal of reducing reliance on the US dollar, which still accounts for more than half of all transactions. Bloomberg reported that while the transition is intended to be market-driven, the bank aims to create supportive conditions, including low inflation, adequate reserve buffers, sound financial and payment systems, an efficient exchange rate, and alignment between monetary and fiscal policies.

Describing the policy adjustment, the bank said decisions would be “calibrated to reflect emerging inflationary pressures and crystallization of any inflation risks,” signalling a more measured approach to monetary management in a volatile economic environment, Bloomberg added.