Money market returns ‘to remain subdued’

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MONEY market investments are likely to deliver the least returns of all asset classes in Zimbabwe this year, as short-term rates are expected to continue to lag behind inflation, a local research firm has said.
Rates for 30 to 180-day instruments have been ranging between 20 and 25 percent per annum, whereas year-on-year inflation was reported by the Zimbabwe National Statistics Agency at 321,59 percent for February.

And while Treasury expects inflation to “drastically” slow down this year, it is projecting an annual average of 135 percent.
“The current interest rates (on money market investments) offer sub-inflation returns,” Akribos Research Services (Akribos) said recently in a note.