The bank policy rate managed to stem speculative borrowing and ensured that available credit was channelled towards the productive sectors of the economy.
Mushayavanhu promised to review the rate in line with changes based on inflation and output dynamics.
However, calls to reduce the bank policy rate continue as companies have been saddled with a high cost of borrowing, limiting their ability to expand or increase cash flows. “The prevailing interest rate of 35%, maintained by the RBZ, continues to place a significant strain on business operations.
The current interest rate increases the cost of borrowing, thus reducing the availability of affordable funding for working capital and capital investment needs,” Beverages Manufacturers Association chairperson Calum Philp told NewsDay Business in an interview. 🔗 Read Full Article
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