The Central Bank continues to maintain a hawkish approach towards money supply as evidenced by the introduction of Zero Percent Non-Negotiable Certificates of Deposit (CDs) in a bid to wipe out excess liquidity in the economy. This comes after month-on-month inflation inched up 0.9% from 1.6% in April to 2.5% in May, followed by another uptick to 3.9% in June. In pursuit of the same goal of reducing money supply, the Monetary Policy Committee reviewed reserve money growth target from 22.5% per quarter to 20% per quarter. The Reserve Bank of Zimbabwe also introduced new ZWL$50 notes to help easy trade among consumers and businesses. This was however viewed as self-contradicting by the general public although the Central Bank emphasizes broad money supply multiplier effect is insignificant.
