UPDATE 1-Zimbabwe central bank keeps policy rate at 35%

(Adds detail from statement and context, paragraphs 2-5)

HARARE, Dec 4 (Reuters) – Zimbabwe’s central bank said on Wednesday that its Monetary Policy Committee (MPC) had met and decided to leave its policy rate unchanged at 35%.

The bank said in a statement that the MPC wanted to maintain tight policy to anchor inflation expectations.

In September, the central bank allowed the country’s recently-launched currency Zimbabwe Gold to fall over 40% and hiked its policy rate to 35%.

The devaluation caused a

sharp spike

in inflation in October, when prices rose by 37.2% month-on-month in local currency terms. November’s month-on-month inflation rate slowed to 11.7%.

Finance Minister Mthuli Ncube said in

a budget speech

last week that economic growth would accelerate next year as the southern African country recovers from a severe drought. (Reporting by Nyasha Chingono; Writing by Alexander Winning; Editing by Kim Coghill)

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