off-the-wire

Zimbabwe cuts policy rate to 150% after inflation falls

Kitco Media
By Reuters
Published:
Updated:
Reuters

HARARE, Feb 2 (Reuters) - Zimbabwe's central bank has cut its policy rate by 50 percentage points to 150%, it said in a statement on Thursday, driven by a downward trend in inflation since late last year.

Monthly inflation fell to 1.1% in January from 2.4% in December, while yearly inflation dipped to 229.8% from 243.8%.

"The moderation in interest rates is important and necessitated by the downward trend in the month-on-month inflation since the last quarter of 2022," said the bank, adding it expects the trend to continue into 2023.

"The Bank will continue its tight monetary policy stance," it added.

Reporting by Nellie Peyton and Nyasha Chingono Editing by Alexander Winning
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