Zimbabwe Cuts Rates After US-Iran Deal

Zimbabwe's central bank became the first globally to cut interest rates after the US-Iran interim peace deal reopened the Strait of Hormuz and drove down oil prices. The Monetary Policy Committee lowered the benchmark rate to 30% from 35%, Governor John Mushayavanhu announced, aiming to stimulate economic activity amid lower inflation expectations. The rate cut reflects Zimbabwe's vulnerability to global commodity price shifts and its struggle to stabilize the ZiG currency amid fragile foreign reserves, highlighting the impact of geopolitical developments on domestic policy. The deal is seen as a significant diplomatic breakthrough that has eased global energy markets. Zimbabwe, heavily reliant on imported fuel, benefits directly from lower oil prices, which help reduce import costs and ease inflationary pressure.