/ 17 January 2001

ZIMBABWE CENTRAL BANK SEES INFLATION SURGING

ZIMBABWE’S Reserve Bank governor Leonard Tsumba says average inflation is expected to rise to about 70% in 2001 from 55.7% last year, further threatening the fragile economy. High inflation levels had led to high nominal interest rates with serious debt service implications for the country’s productive sectors, Tsumba said. Tsumba also cut interest rates on loans for exporters and producers in the agriculture, manufacturing and tourism sectors in a bid to revive their performance. – AFP/Reuters

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