Zimbabwe to raise interest rates by a record 190% in the face of rising inflation

- They will place more emphasis on the security of the agricultural sector and will continue to facilitate loans at low interest rates to save the agriculture sector.

New delhi date. Sunday, June 26, 2022

In a way, inflation has suffocated the whole world, but the situation in the South African country of Zimbabwe is looking very dire. Zimbabwe's central bank has been forced to raise its interest rates by 190 per cent to counter rising inflation.

After the Zimbabwe Central Bank's MPC meeting, it was announced that the inflation rate was completely out of control. Zimbabwe already has the most expensive interest rate in the world and will now have to raise key interest rates by 190 per cent to curb inflation.

Annual inflation rose to 191.6 per cent in June, officials said. Under these circumstances, the pressure on the local currency is mounting, which will require an unexpected rise in interest rates.

Cheap loans to the agricultural sector

Zimbabwean President Emerson Mangagwa said he would place more emphasis on protecting the agricultural sector and continue to offer low-interest loans to save the agriculture sector. In addition, interest rates on bank deposits are being raised to ensure that people get more out of their savings.

Preparing to save the masses from starvation

Emerson said his government is working to keep inflation in check and to keep inflation in check. Raising interest rates is a necessary step for this. Earlier on June 17, the central bank had banned all banks from issuing new loans. In addition, interest rates on loans were raised to 80 per cent with effect from July 1. It is now set to increase it to 190 per cent.

The growth rate was also affected

According to Zimbabwe's central bank, inflation is projected at 160 per cent for the current financial year, up from 25 per cent and 35 per cent. Despite all efforts, it cannot be brought below 100 percent. That is why the growth forecast is now being reduced from the previous 5.5 per cent to 3.5 per cent.