Categories: Zim Latest

RBZ raises interest rate from 40 to 60%

The Reserve Bank of Zimbabwe (RBZ) has raised its benchmark interest rate from 40%, to 60% in attempt to stabilise a dying currency and control a surging inflation.

The decision comes just 17 days after the Central Bank hinted it would curb speculative borrowing.

Zimbabwe’s local currency, Zimdollar is on a free-fall trading badly against major convertable currencies.

The exchange rate on the informal market is going haywire, with the government blaming forex dealers.

However, renowned world economist, Steve Hanke says the Zimdollar is on the death-bed.

He is on record calling on the Harare administration to make the fundamentals right.

Zwnews

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