Tinotenda Hove- The Reserve Bank of Zimbabwe on Thursday clung to its tight monetary policy, keeping the bank policy rate at 30 percent and exporter retention at 70 percent, even as businesses and households continue to buckle under high borrowing costs and a liquidity crunch.

In its Mid-Term Monetary Policy Review Statement, the central bank insisted the stance was needed to “consolidate recent gains in macroeconomic stability.” But critics say the RBZ is celebrating optics while ignoring the real economy.

The bank pointed to a rise in reserves backing the Zimbabwe Gold currency to “US$1.7 billion by the end of July,” claiming it “strengthening the currency’s reserve position.” The increase, it said, was “supported by a 47 percent rise in foreign currency inflows during the first half of the year.”

Yet economists question how much of that stability is translating to the street. With lending still priced at 30 percent, companies are struggling to access affordable credit, and consumer demand remains depressed. The 70 percent foreign currency retention threshold also continues to frustrate exporters who argue they need more of their earnings to retool and stay afloat.

“The measures were aimed at preserving currency and macroeconomic stability while supporting economic activity,” the RBZ said. But “supporting economic activity” rings hollow when borrowing is prohibitively expensive and banks are reluctant to lend outside of government and big corporates.

The central bank is now projecting economic growth of “5 percent this year,” with the outlook “anchored on interventions aimed at boosting investment in the country.”

That projection appears ambitious given ongoing power shortages, policy inconsistency, and investor skepticism about the ZiG. Holding rates at 30 percent may keep inflation in check on paper, but it also chokes private sector expansion and job creation — the very things needed to make that 5 percent growth credible.

Instead of easing pressure, the RBZ has chosen caution over growth. For now, stability seems to mean stability for the currency charts, not for the businesses and families paying the price.