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, authorities said on Monday.
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.
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.
“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
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
