Tanzania central bank holds key interest rate unchanged for a third time

 

Reuters: Dar es Salaam For the third consecutive policy meeting, Tanzania's central bank held its benchmark interest rate steady at 6% on Wednesday in an effort to keep inflation below its target.


The rate was set at 5.50% by the bank when it was introduced in January 2024. Consumer inflation has remained comfortably below the 5% inflation target set by the bank.

In the first quarter, inflation is expected to remain between 3.1% to 4%, according to a statement from Bank of Tanzania Governor Emmanuel Tutuba.

In November, Tanzania's finance minister and central bank governor wrote to the International Monetary Fund, predicting that the country's economy will expand by almost 6% this year, up from a projected 5.4% in 2024. Fund.

 

The economy is forecast to grow 5.7% year-on-year in the first quarter, Tutuba said.

(This story has been refiled to fix garbled words in paragraph 1)

 

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