Zimbabwe: RBZ Puts On Brave Face As Inflation Climbs

CENTRAL bank is putting a brave face to the first rise in inflation in twelve months, amid growing concern that RBZ's splurging on the public sector will halt its recent successes against rising prices.

Research by two economists made available to StandardBusiness shows that in addition to a larger civil service wage bill, spending from central bank on parastatals, councils, cheap productive sector support, subsidies to exporters and other costs could swell expenditure by up to $26 trillion. This far exceeds acting Finance Minister Herbert Murerwa's estimates of $19 trillion.

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