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Consistent with international best practice in corporate governance, the Reserve Bank strictly adhered to all statutory requirements, including Board and Monetary Policy Committee (MPC) meetings and audited financial statements for the year 2024. Going forward, the Reserve Bank commits to upholding the primacy of price, exchange rate and financial sector stability to underline its reform credentials, stay the course and ‘walk the talk’ on prudent monetary policy management.
The Bank implemented a tight monetary policy stance in 2023 to curtail inflationary and exchange rate pressures that prevailed during much of the year. As a result, annual inflation declined during the year from 53.0% in January 2023 to 26.5% in December 2023. The average inflation during the year was 29.8%.
The domestic banking sector remained in a safe and sound position during 2022, with strong asset quality and adequately capitalised institutions. In the face of rapid technological developments, the sector enhanced its risk management systems and improved bank business models. All banking institutions were adequately capitalised and experienced improved financial intermediation.
The tight monetary policy stance pursued by the Bank in 2021 resulted in sustained deceleration in annual inflation from 362.63% in January 2021 to 50.25% by the end of August 2021. However headline inflation, gradually rose in the last quarter of 2021 to end the year at 60.73%, driven by the sustained increase inforeign exchange parallel market premiums and thegeneral increase in global food and oil prices as a result of Covid-19 induced supply chain challenges.
