Macroeconomic Forecast Zimbabwe

October 2007 | Macroeconomic Forecasts

Predictably, the government was unable to sustain its arbitrary price controls on consumer goods, and in August (y-o-y) inflation resumed its upward spiral, coming in at 7, 982.1%. Reserve Bank Governor Gideon Gono recently presented a delayed Monetary Policy Statement, which promised to address the problems at hand, but with further special lending facilities looming on the horizon, the measures can be hardly taken seriously. Fiscal discipline would be key in preventing a further exacerbation in inflationary pressures, but with an election coming up, prudence is likely to remain elusive.

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