Zimbabwe’s Reserve Bank Increases interest rate to 200% amid rising prices

The Reserve Bank of Zimbabwe (RBZ), the country’s central bank, has raised its benchmark interest rate from 80 to 200 percent, citing spiralling inflationary pressures amid rising fuel prices.

John Mangudya, the bank’s governor, announced this in a statement following the meeting of the bank’s monetary policy committee (MPC).

The hike brings the cumulative increase in rates this year to 14,000 basis points — the world’s highest.

Mangudya said that an aggressive monetary stance was needed to stop the rise in prices and enhance the circulation of foreign exchanges.

He said the new interest rates will come into effect from July 1, 2022.

According to Mangudya, the MPC also decided to increase the medium-term accommodation interest rate from 50 percent to 100 percent, while for Zimbabwean dollar savings, the minimum deposit rate was increased from 12.5 percent to 40 percent per annum.

He said consumer prices rose 30.7 percent on a month-on-month basis in June, bringing the year-on-year inflation rate to 191.6 percent.

“The committee noted that the increase in inflation was undermining consumer demand and confidence and that if not controlled, it would reverse the significant economic gains achieved over the past two years,” Mangudya said.

Meanwhile, the bank also announced the introduction of gold coins into the market as an alternative store of value.

“The MPC resolved to introduce gold coins into the market as an instrument that will enable investors to store value,” he said.

“The gold coins will be minted by Fidelity Gold Refineries (Private) Limited and will be sold to the public through normal banking channels.”

The Zimbabwean government also said it would legalise the use of the US dollar for the next five years to help steady its local currency.

In Nigeria, the central bank recently hiked its interest rate to 13 percent to tame rising inflation.

Comments

Kenyan Law Court dismisses case of man seeking compensation after his wife eloped with another man from hospital

A lawsuit filed by a man seeking to be compensated by St Mary's Mission Hospital in Kenya for allowing his wife to leave the hospital with another man after giving birth, has been struck out by a law court. The appellant had sued the St. Mary's Mission hospital at Kakamega law courts in 2020 seeking general damages from the facility on grounds that the hospital had discharged his wife and allowed her to leave with another man. After delivering and at the time of discharge, the wife of the appellant claimed he was the baby's father. The court of appeal judges Patrick Kiage, Mumbi Ngugi and Francis Tuiyott sitting at the Kisumu Court of Appeal, empathized with the man, but disagreed that he (the appellant) be compensated by the hospital for not detaining his wife. They upheld the lower court's judgement which added that there's no remedy that lies in the law for such grievances. Kiage said; "I agree that if a man takes the woman he loves to t...

CJN Tanko unveils panel to hear Atiku’s appeal against Buhari

The Chief Justice of Nigeria, Ibrahim Tanko Mohammed is presiding over the 7-man panel that will hear the appeals filed by the People’s Democratic Party (PDP) and its presidential candidate, Atiku Abubakar, challenging the victory of President Muhammadu Buhari at the February 23 poll. Other members of the panel are Bode Rhodes-Vivour, Amiru Sanusi, Uwani Abaji, Ejembi Eko, John Inyang Okoro and Olukayode Ariwoola. Atiku and his party are challenging the September 11 judgment of the Justice Mohammed Garba-led Presidential Election Petitions Tribunal which affirmed President Buhari’s victory at the polls. The appeals hearing has generated some controversies especially due to the silence of the Supreme Court on the justices that would constitute the panel, with the Coalition of United Progressives Party (CUPP) demanding the use of seniority in selecting them. A senior member of Atiku’s legal team, Chief Chris Uche (SAN), told reporters that they considered it strange that as at ...

FRSC reinforces directive on use of google maps while driving

The Federal Road Safety Corps (FRSC) has clarified its position on the use of Google Maps, The FCT Sector Commander of the Federal Road Safety Corps (FRSC), Ayuba Gora was quoted saying that driving with the aid of Google map using mobile phones is a serious traffic offence. Gora said this at the inauguration of the 2019 Ember Months Campaign by Lugbe Unit Command of the FRSC in Abuja yesterday. But, FRSC Spokesman Bisi Kazeem making reference to Gora’s comments said the Sector Commander was quoted out of context and his statement outrightly misrepresented. Kazeem said the FRSC as a technology-driven organisation is not and has never stood against the use of Google Maps by Motorists. The statement read: “To state the obvious, we have always enlightened the public on the position of the law on the use of phone while driving. “The statement he made during the flag off buttresses the position of the Corps, which is that any driver who intends to deploy the use of Google Map...

BAMY BLOG

Search This Blog