Zimbabwe Holds Steady: Central Bank Leaves Interest Rate Unchanged

Zimbabwe's central bank retained its policy rate at 35%, aiming to curb inflation expectations. The recent devaluation of Zimbabwe Gold led to significant inflation, although monthly rates have slowed. Finance Minister Mthuli Ncube anticipates economic growth in the upcoming year, despite current challenges.

Zimbabwe's central bank has decided to keep its policy rate unchanged at 35%, according to a Wednesday announcement by the Monetary Policy Committee (MPC).

The committee emphasized the importance of maintaining a tight monetary policy to anchor inflation expectations. This follows September's drastic 40% devaluation of the Zimbabwe Gold currency and a subsequent rate hike to 35%.

The currency depreciation led to a sharp increase in inflation, with prices rising by 37.2% month-on-month in October. However, November saw a slowdown in inflation to 11.7%. Finance Minister Mthuli Ncube expressed optimism that the economy will grow next year as the country recovers from a severe drought.

(With inputs from agencies.)