Zimbabwe kept its bank interest rate at 35 percent after worries about world tensions. John Mushayavanhu leads the central bank and made the choice during a surprise Monday meeting. He pointed to trade fights and wars that slow down global growth. The bank planned to meet on June 27 but moved the date earlier. Officials want to keep money policy tight during these risky times.
The country still expects its economy to grow six percent this year. Farm crops like corn and tobacco help drive this growth after better harvests. Cotton production also improved compared to last year. Other business areas should do well because prices stay steady. The local currency remains stable against foreign money.
Zimbabwe raised rates last September when its gold-backed ZiG currency lost value quickly. Companies complain the tight policy creates cash shortages across the economy. The central bank says its approach helped make the ZiG more stable. People use the ZiG currency for 43 percent of purchases compared to 26 percent last April. Foreign money reserves backing the ZiG total 701 million dollars.
The country still expects its economy to grow six percent this year. Farm crops like corn and tobacco help drive this growth after better harvests. Cotton production also improved compared to last year. Other business areas should do well because prices stay steady. The local currency remains stable against foreign money.
Zimbabwe raised rates last September when its gold-backed ZiG currency lost value quickly. Companies complain the tight policy creates cash shortages across the economy. The central bank says its approach helped make the ZiG more stable. People use the ZiG currency for 43 percent of purchases compared to 26 percent last April. Foreign money reserves backing the ZiG total 701 million dollars.
