Give RBZ autonomy, IMF tells Zimbabwe

The International Monetary Fund (IMF) said in a Working Paper that the Reserve Bank of Zimbabwe (RBZ) needs to be independent from government to achieve its policy objectives.

In its working paper entitled Zimbabwe: A Quest for a Nominal Anchor, prepared by Arto Kovanen, the IMF said it was possible that once inflation declined to a relatively low level, another monetary aggregate, such as reserve money, could be useful for the conduct of monetary policy.

Kovanen said high inflation and the acc