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flag Zimbabwe's central bank held its record-high 35% interest rate in 2026 to fight inflation and stabilize the currency, despite economic strain and low public trust in its gold-backed currency.

flag The Reserve Bank of Zimbabwe kept its 35% benchmark interest rate—the highest in Africa—amid concerns over business liquidity and economic stagnation, citing inflation control and currency stability as priorities. flag While inflation fell to 0.3% by mid-2025 and GDP growth is projected at 6.6%, high borrowing costs continue to strain firms, with limited credit access and rising corporate distress. flag The RBZ eliminated some banking fees and expanded a $1.2 billion funding facility for key industries but maintained its tight policy stance, warning against premature rate cuts. flag It also dropped a fixed 2030 timeline for adopting a single currency, a move seen as reducing policy unpredictability. flag Despite progress with the gold-backed ZiG, public confidence remains low, with only 30% of transactions using the local currency.

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