Mangudya rules out further interest-rate increases

The Reserve Bank of Zimbabwe has ruled out further interest-rate increases saying they would have potentially negative repercussions on the country’s economy.

The central bank governor, John Mangudya said the limit in that regard has already been reached.

“We’ve already hiked rates and there is a limit to hiking rates, beyond which point they will cause non-performing bank loans to increase,” he said this week.

He added that the country need foreign currency inflows to curb inflation.

“In our case we have identified that the inflation is about the supply and demand side.

“We need the supply of foreign currency in the economy to increase to stop a deterioration in the exchange rate and contain inflation,” he said.

Zwnews