Zimbabwe has been unseated from its unenviable position of having the world’s highest interest rate by Argentina, after slashing borrowing costs to help boost economic growth.
Unlike Argentina, which raised borrowing costs by 15 percentage points to 133% on Oct. 12 to curb price inflation that’s running at 138%, government interventions in Zimbabwe have enabled it to cut rates.
Zimbabwe’s monetary policy committee cut the benchmark interest rate to 130% from 150%, which lags Argentina’s 133%.
Annual inflation in Zimbabwe slowed to 18.4% in September from 77% a month earlier after the statistics office revised its methodology to take into account the dominant role the US dollar plays in the economy.
The ZimDollar remains well off its record lows against the greenback (in the official data).