Zimbabwe Keeps Interest Rate at 20%, Predicts Inflation Below 5% by Year-End

Zimbabwe’s central bank has maintained its key interest rate at 20%, anticipating that inflation will remain subdued and fall below 5% by year-end, thanks to its new bullion-backed currency, the ZiG. Governor John Mushayavanhu stated that the monetary policy committee aims to sustain current economic stability. The ZiG, introduced in April, has helped reduce monthly consumer prices, which fell by 2.4% in May. Despite this, the currency weakened to a record low of 13.68 against the dollar.