Zimbabwe central bank raises policy rate to 200%
Finance minister guarantees use of US dollar through 2025, while RBZ will mint gold coins
The Reserve Bank of Zimbabwe ordered a 12,000 basis point increase in the policy rate on June 27, taking it to 200%.
The RBZ’s monetary policy committee cited a June year-on-year inflation figure of 191.6% in its policy statement. The official inflation rate has more than tripled since the year began. The policy rate had already risen from 35% in early 2021 to 80% before the June 27 decision.
The MPC “noted that the increase in inflation was undermining consumer demand and confidence”. The
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