Zimbabwe lowers key interest rate from 150% to 130%

Zimbabwe has lowered its key interest rate from 150% to 130% because it is pleased with the relative exchange rate and price stability obtaining in the economy since June 2023. 

The Reserve Bank of Zimbabwe Monetary Policy Committee, which met yesterday, said there was need to ensure that inflation expectations continued to be firmly anchored through urgent attention to any emerging risks. 

It said that there was also need to continue promoting solutions that were aligned with the digital space and plastic money environment that the country found itself in.

“With effect from 1 November 2023, foreign currency retentions on exports shall be

standardised at the level of 75% across all sectors of the economy and all special

dispensations granted to some sectors of the economy shall be removed,” the MPC said. “The net effect of this measure is to increase foreign exchange resources available to the Bank and government to meet foreign exchange requirements for the settlement of national and international obligations.”

The MPC encouraged financial institutions to scale up financial inclusion through opening of

more no-frills, or low-cost, accounts. 

It also urged the government to scrap Intermediated Money Transfer Tax (IMTT) on transactions that are intermediated through plastic bank cards and other digital platforms.

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