HomeBusiness DigestBudget puts Gono under pressure

Budget puts Gono under pressure

Shakeman Mugari

THE budget presented yesterday is so vague that it will turn the pressure on the newly-appointed Reserve Bank governor Gideon Gono.

erdana, Arial, Helvetica, sans-serif”>Murerwa said details on how to tackle inflation and interest rates would emerge in Gono’s policy statement in mid-December this year.

Murerwa avoided the hot issues of interest rates and the exchange control, which the market has been awaiting in anticipation of a sliding devaluation of the dollar. The minister was vague on interest rates saying government would pursue a policy that encourages growth on one hand, while fighting inflation on the other.

“The details will be announced in the monetary policy statement to be issued by the governor of the Reserve Bank of Zimbabwe by mid-December,” said Murerwa.

On the exchange rate, the minister again referred to the Gono statement, which he said would ensure there were no foreign currency leakages.

Analysts say the skeletal budget leaves Gono exposed. The burden now lies squarely with Gono who is expected to pull the ailing economy from the abyss.

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