Zimbabwe doubles interest rates to fight inflation

2022/06/27 22:05:00

Main policy rate increased to 200% from 80% from July 1.

Zimbabwe, Dollar

Zimbabwe more than doubled interest rates to 200% in an effort to tame inflation and also outlined plans to make the U.S. dollar legal tender in the southern African nation for the next five years. Moneyweb Zimbabwe Inflation

Main policy rate increased to 200% from 80% from July 1.

Zimbabwe more than doubled interest rates to 200% in an effort to tame inflation and also outlined plans to make the U.Zimbabwe is seeking to tame soaring inflation rates.Zimbabwe’s central bank plans to more than double the benchmark interest rate — already the highest in the world — to 190%, a member of its monetary policymaking committee said, as it seeks to put a brake on soaring inflation.The development came as the government failed to present new measures to tackle the rising cost of living which President Emmerson Mnangagwa had said would announced Saturday.

S. dollar legal tender in the southern African nation for the next five years, authorities said on Monday. Persistence Gwanyanya, from the bank’s MPC, said the intention was to achieve a positive real interest rate to discourage speculative borrowing that undermines the local currency. Soaring inflation has been piling pressure on a population already struggling with shortages and cast a shadow over President Emmerson Mnangagwa’s bid to revitalise an economy that suffered decades of decline and bouts of financial chaos under the leadership of former president Robert Mugabe.6% in June. Zimbabwe’s central bank said the increase in its policy rate to 200% from 80% will take effect from July 1 after annual inflation hit almost 192% this month.6% in June. “The Committee noted that the increase in inflation was undermining consumer demand and confidence and that, if not controlled, it would reverse the significant economic gains achieved over the past two years,” the Reserve Bank of Zimbabwe said in a statement. The Zimbabwean dollar has weakened 70% this year against the US dollar, making it Africa's worst performing currency.

Separately, finance minister Mthuli Ncube said that Harare will maintain Zimbabwe’s multi-currency system for the next five years, including the U. President Emmerson Mnangagwa has said his government will unveil steps to curb inflation and the surging price of basic commodities, without providing further details. “At a time when banks were still adjusting their interest rates, they will be confronted with steep rates,” Gwanyanya said.S. dollar. On June 17, the central bank barred banks from lending at below the official rate, currently at 80%, with effect from July 1. The greenback is already used in Zimbabwe, but it will become legal tender to boost market confidence, Ncube told a news conference. “We have decided to bite the bullet,” Gwanyanya said. The country has experimented with various forms of legal tender, such as bond notes, though foreign currencies such as the U.  "We have decided to bite the bullet," Gwanyanya said.7% in May.

S. dollar and South African rand have dominated domestic transactions."  To protect farming production, the key agriculture sector will be eligible for"a concessionary interest rate," he said. The deposit rate will also be increased to ensure that banks compensate depositors for their savings. “The market’s lack of confidence in multi-currency is causing us problems, but I’m here to assure you it will remain in place for the next five years,” Ncube said. The minister also said that the government had increased health sector allowances in an effort avoid further industrial action by healthcare workers who staged a five-day strike last week, demanding improved wages in U. The central bank’s inflation outlook has been revised upward to 160% by year-end from an initial forecast of between 25% and 35%.S. The bank has cut its economic growth forecast to 3.

dollars after a slide in the local currency and brisk inflation. The bank has cut its economic growth forecast to 3. .

Read more:
Moneyweb News »

ITWeb | Business Technology News and Information Site

Read more >>

Zimbabwe plans to hike benchmark interest rate to 190% to tame inflation | Fin24 Zimbabwe ’s central bank plans to more than double the benchmark interest rate - already the highest in the world - to 190% as it seeks to put a brake on soaring inflation. | Fin24 Fin24 I Zim doesn't qualify as a country anymore! Fin24 M afraid this is a failed state Quite sad it has come to this Fin24 SA firms and corporations are benefiting big time since Zim is in a crisis. Remove the sanctions and allow free trade

Zimbabwe plans triple-digit interest rate hike Zimbabwe ’s central bank plans to more than double the benchmark interest rate — already the highest in the world — to 190%. Moneyweb Zimbabwe Inflation

Zimbabwe: Inflation Doubles in Two Months to 191 Percent - As New Measure Mnangagwa Said to Come Saturday Not AnnouncedZIMBABWE'S annual inflation rate quickened to 191.6 percent in June, more than doubling the consumer price increases of two months ago, official statistics showed Saturday.

National disaster coming for middle class - Here's how to avoid being pushed over poverty line | The CitizenHere are some tips to survive the financial strain of rising inflation and increasing interest rates.

Zimbabwe plans triple-digit interest rate hike to tame inflation Zimbabwe ’s central bank plans to more than double the benchmark interest rate -- already the highest in the world -- to 190%, a member of its monetary policymaking committee said, as it seeks to put a brake on soaring inflation. I'm willing to give zim a loan with 100% interest , they can add 90% and still make a profit.

Zimbabwe more than doubled interest rates to 200% in an effort to tame inflation and also outlined plans to make the U.Zimbabwe is seeking to tame soaring inflation rates.Zimbabwe’s central bank plans to more than double the benchmark interest rate — already the highest in the world — to 190%, a member of its monetary policymaking committee said, as it seeks to put a brake on soaring inflation.The development came as the government failed to present new measures to tackle the rising cost of living which President Emmerson Mnangagwa had said would announced Saturday.

S. dollar legal tender in the southern African nation for the next five years, authorities said on Monday. Persistence Gwanyanya, from the bank’s MPC, said the intention was to achieve a positive real interest rate to discourage speculative borrowing that undermines the local currency. Soaring inflation has been piling pressure on a population already struggling with shortages and cast a shadow over President Emmerson Mnangagwa’s bid to revitalise an economy that suffered decades of decline and bouts of financial chaos under the leadership of former president Robert Mugabe.6% in June. Zimbabwe’s central bank said the increase in its policy rate to 200% from 80% will take effect from July 1 after annual inflation hit almost 192% this month.6% in June. “The Committee noted that the increase in inflation was undermining consumer demand and confidence and that, if not controlled, it would reverse the significant economic gains achieved over the past two years,” the Reserve Bank of Zimbabwe said in a statement. The Zimbabwean dollar has weakened 70% this year against the US dollar, making it Africa's worst performing currency.

Separately, finance minister Mthuli Ncube said that Harare will maintain Zimbabwe’s multi-currency system for the next five years, including the U. President Emmerson Mnangagwa has said his government will unveil steps to curb inflation and the surging price of basic commodities, without providing further details. “At a time when banks were still adjusting their interest rates, they will be confronted with steep rates,” Gwanyanya said.S. dollar. On June 17, the central bank barred banks from lending at below the official rate, currently at 80%, with effect from July 1. The greenback is already used in Zimbabwe, but it will become legal tender to boost market confidence, Ncube told a news conference. “We have decided to bite the bullet,” Gwanyanya said. The country has experimented with various forms of legal tender, such as bond notes, though foreign currencies such as the U.  "We have decided to bite the bullet," Gwanyanya said.7% in May.

S. dollar and South African rand have dominated domestic transactions."  To protect farming production, the key agriculture sector will be eligible for"a concessionary interest rate," he said. The deposit rate will also be increased to ensure that banks compensate depositors for their savings. “The market’s lack of confidence in multi-currency is causing us problems, but I’m here to assure you it will remain in place for the next five years,” Ncube said. The minister also said that the government had increased health sector allowances in an effort avoid further industrial action by healthcare workers who staged a five-day strike last week, demanding improved wages in U. The central bank’s inflation outlook has been revised upward to 160% by year-end from an initial forecast of between 25% and 35%.S. The bank has cut its economic growth forecast to 3.

dollars after a slide in the local currency and brisk inflation. The bank has cut its economic growth forecast to 3. .