‘Govt must stimulate domestic demand’

ZIMBABWE’S persistent deflationary environment is seen forcing Reserve Bank of Zimbabwe (RBZ) governor John Mangudya to take an inflation-oriented stance in his monetary policy statement that is due early this year.

Leading UK based research unit NKC African Economics (NKC) said the country has no choice but to tackle deflation given that it is detrimental to productive sectors of the economy, consequently reducing economic growth.