Zimbabwe,
wary
of
a
rise
in
global
tensions,
resolved
to
leave
its
bank
policy
rate
unchanged
at
35%,
according
to John
Mushayavanhu,
the
central
bank
governor.
“The
MPC
noted
the
broad-based
deceleration
of
global
growth
occasioned
by
escalating
trade
tensions,
geo-economic
fragmentation,
regional
and
international
conflicts
and
policy
uncertainty,”
Mushayavanhu
said
in
a
statement
Monday
after
a
surprise
meeting
of
the
Monetary
Policy
Committee.
“Considering
the
challenging
and
rapidly
evolving
risks
to
the
global
growth
outlook,
the
MPC
advised
the
Reserve
Bank
to
maintain
a
sufficiently
tight
monetary
policy
stance.”
The
central
bank
was
set
to
hold
a
rate
setting
meeting
only
later
this
month
on
June
27,
according
to
a
schedule
available
on
its
website.
Despite,
the
current
uncertain
global
environment,
the
bank
said
it
still
sees
6%
growth
in
the
domestic
economy
as
achievable
this
year.
The
strong
performance
of
agriculture
is
expected
to
help
spur
the
expansion
after
improved
output
from
key
crops
including
corn,
tobacco
and
cotton.
“Other
sectors
are
also
expected
to
record
positive
growth
performance,
benefiting
from
the
prevailing
price
and
exchange
rate
stability,”
Mushayavanhu
added.
The
southern
African
nation
has
kept
rates
unchanged
since
it
lifted
them
last
September
in
response
to
a
sharp devaluation of
its
gold-backed
currency,
the
ZiG.
Businesses
have
repeatedly
asked
the
central
bank
to reconsider its
tight
monetary
policy
stance,
which
is
causing
a
severe
liquidity
crunch
in
the
economy.
The
bank
maintains
that
its
policy
has
helped
stabilize
the
ZiG,
short
for
Zimbabwe
Gold,
and
is
seeing
increased
usage
in
the
economy.
It
is
now
used
in
43%
of
transactions
in
the
economy
up
from
26%
last
April,
according
to
the
governor.
The
foreign
currency
reserves
backing
the
ZiG
stood
at
$701
million
as
of
last
Friday.
The International
Monetary
Fund last
week
also
voiced
support
for
the
ZiG
to
become
the sole
currency in
the
economy.
The
ZiG
is
the
nation’s
sixth
attempt
at
establishing
a
functioning
local
currency
since
2009.