The Central Bank of Zimbabwe has been lowering rate of interests of the economy to boost growth. The bank is being _______ in its monetary policy stance.

Correct option is C

Correct Answer: (c) Dovish

Explanation:

• When the Central Bank of Zimbabwe lowers interest rates to boost economic growth, it is adopting a dovish monetary policy stance.
• A dovish stance refers to favoring economic growth and employment over strict inflation control.
• By reducing interest rates, borrowing becomes cheaper, encouraging businesses and consumers to spend and invest, thereby stimulating the economy.

Other Options:

• Neutral: A neutral stance indicates no active measures to change interest rates or monetary policy, which is not the case here.
• Hawkish: A hawkish stance is focused on controlling inflation by raising interest rates, which is opposite to what is described.
• Accommodative: While dovish and accommodative policies are similar, dovish specifically reflects a focus on supporting growth, often with a lenient stance on inflation.