RESERVE Bank of Zimbabwe governor Gideon Gono has poured cold water on sensational claims by government and state media that his monetary policy, barely two months old, has turned the eco
nomy around. Addressing delegates to a monetary policy seminar hosted by the Institute of Chartered Accountants of Zimbabwe on Tuesday, Gono said monetary policy could not be credited for the slight drop in the galloping inflation rate.
“Nothing could be further from the truth,” he said. “We still believe inflation will go above 600% but should come down from March.”
He was referring to the growing claims in government circles and the state media that the policy presented in December had already produced results on the inflation front.
“Do not give us credit when we do not deserve it,” said Gono. “What we have achieved so far, I have not done it alone but through everyone’s input.”
Gono said the Reserve Bank expects inflation to rise above 600% but to start coming down from March. The inflation figure for December dropped to 598% from 620% in November. The state media immediately went into a frenzy heaping praise on both the government and the central bank governor. But this week the reputable banker said he would not take credit yet for the limited signs of recovery seen in the last few weeks.
“The sooner we regard this as a national blueprint and not a Gono blueprint the better,” he said. “I take full responsibility for any negative impact but the credit should go to the rightful people,” he said.