Zimbabwe central bank raises key rate to 200% amid rising inflation

Zimbabwe’s central bank raised interest rates to a record and the government officially reintroduced the US dollar as legal currency to rein in surging inflation and stabilize the nation’s tumbling exchange rate.

The monetary policy committee more than doubled the key rate to 200% from 80%, Governor John Mangudya said in a statement on Monday. That brings the cumulative increase this year to 14,000 basis points -- the most globally.

“The monetary policy committee expressed great concern on the recent rise in inflation,” Mangudya said. “The committee noted that the increase in inflation was undermining consumer demand and confidence and that, if