RBZ move on interest rates commendable

THURSDAY’s move by the Reserve Bank of Zimbabwe (RBZ) to cut the lending rate and review forex retention earnings is quite commendable as it breathes a new lease of life into business which was suffocating under a constricted operating environment.

In the current wave of rate hikes worldwide, Zimbabwe’s central bank had emerged as the most aggressive after pushing up the lending rate to a shocking  200% last year, the highest globally.

By moving to punish companies with a 200% lending rate, the RBZ had effectively killed the goose that lays the golden egg.

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