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Zimbabwe Central Bank mules interest rates cuts

HARARE – Monetary authorities agree that there is need to lower the cost of borrowing in Zimbabwe in order to support high production in the economy, but are still studying key fundamentals to see if that will not upset current stability. Reserve Bank of Zimbabwe RBZ Governor Dr John Mangudya, said recently that the bank’s monetary policy committee (MPC), was still looking at the key economic fundamentals and will look at possible interest rate review downwards in the new year. The Reserve Bank of Zimbabwe raised its policy rate to 35 percent from 15 percent in a bid to curb speculative borrowing amid surging inflation.

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