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After seeing the country\u2019s inflation rise to 191.6% in June, Zimbabwean monetary authorities said they have resolved to increase the benchmark interest rate to 200% per annum. In addition, the central bank said it will introduce gold coins which will act as an instrument that will \u201cenable investors to store value.\u201d<\/strong><\/p>\n Monetary authorities in hyperinflation-stricken Zimbabwe reportedly plan to hike the benchmark interest rate to 200% per annum, one of the highest in the world. According to an official quoted by Bloomberg, this plan is expected to help put the brakes on the country\u2019s runaway inflation. The latest data from Zimbabwe\u2019s statistical body shows the country\u2019s inflation rate now stands at 191.6%.<\/p>\n Explaining the rationale behind the planned move, Persistence Gwanyanya, a member of the Reserve Bank of Zimbabwe (RBZ)\u2019s monetary policy committee, said<\/a> that by hiking the benchmark rate the central bank will discourage speculative borrowing. Gwanyanya added:<\/p>\n At a time when banks were still adjusting their interest rates, they will be confronted with steep rates.<\/p>\n<\/blockquote>\n Before this latest announcement, the RBZ had on June 17 asked banks to cease lending at rates below 80% starting on July 1, 2022.<\/p>\n Gwanyanya is also quoted in the same report conceding that the central bank\u2019s initial year-end inflation target of between 25% and 35% can no longer be achieved. Due to the effect of what he called \u201cexternal shocks,\u201d the monetary policy committee has now upped its inflation rate forecast to a figure that is above 100%.<\/p>\n<\/p>\nDiscouraging Speculative Borrowing<\/h2>\n
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Gold Coins as Alternative Store of Value<\/h2>\n