(Adds details, background) By Nelson Banya HARARE, Feb 21 (Reuters) - Zimbabwe police on Wednesday imposed a 3-month ban on political rallies and protests to calm rising tensions in the capital Harare's volatile townships, a move the opposition likened to "a state of emergency". The ban, announced in state newspapers, followed weekend clashes between the police and opposition Movement for Democratic Change supporters in Highfield township -- a traditional hotspot of opposition politics -- which saw riot squads fire teargas and water cannon to stop an MDC rally. State media has said the police feared the MDC wanted to use the rally to launch new protests against President Robert Mugabe's government, but the MDC says it wanted to start its 2008 presidential campaign. Mugabe, who has ruled Zimbabwe since independence from Britain in 1980, turned 83 on Wednesday. Police in Harare published notices on Wednesday saying there had been "pandemonium, looting and destruction of property" following opposition political rallies in some townships this month, which warranted a temporary ban until May. "The holding of rallies and demonstrations in Mbare district (and Harare South) are prohibited from today 20th February 2007 to 20th May 2007; that is, a period of three months," the police announcement said. The prohibition order affects Highfield where the police say they arrested 40 opposition supporters following the weekend clashes. They would be charged with public violence. Tensions are high in the southern African country over a deepening economic crisis marked by spiralling inflation, which at 1,600 percent is the highest in the world, shortages of foreign currency, food and fuel and surging unemployment. MDC spokesperson Nelson Chamisa said the latest move showed Mugabe was unsettled by growing anger over a crumbling economy largely blamed on his politically driven policies. "It is clear the regime is panicking. They are trying to impose a state of emergency ... this is tantamount to banning the MDC and all political activity," said Chamisa, vowing to continue "to organise our meetings and rallies where necessary". Police on Wednesday continued to patrol some poor townships and the city centre, a show of force analysts said was meant to pre-empt any action by the opposition. Zimbabwe has since the start of the year witnessed a spate of industrial strikes for higher wages, including by doctors and some teachers, and unions are threatening more job boycotts, which authorities fear could spill onto the streets. Mugabe denies running down the economy and says his government is a victim of a Western sabotage campaign over his policy of seizing land from white farmers to resettle blacks. Mugabe -- who remains defiant in the face of the damaging economic crisis -- denied opposition charges that he wanted to hang onto power after the end of his current term next year.
