The Reserve Bank of Zimbabwe is targeting the 7 percent mark on inflation in the medium term since such levels enhance long term growth of the economy.
This came up when Dr John Mangudya was making a presentation during the pre-budget seminar in Bulawayo last week.
By inflation-targeting, the central bank is looking at enhanced public understanding of monetary policy, increased central bank accountability and the general improved environment for economic growth.
Dr Mangudya indicated that RBZ remains committed to contain inflation within the growth enhancing levels of 3 percent to 7 percent, which are necessary to preserve purchasing power and foster wage stability.
Given this scenario, the central bank has come up with value preservation strategies meant to cushion Zimbabweans and these include offshore financing of critical imports like fuel, wheat and cooking oil.
All this is done to create space for domestic productivity which is the hallmark of any viable economy.