Bank of Tanzania keeps rates unchanged

The Bank of Tanzania kept the key rate unchanged at 6 per cent for the quarter ending September 2024. This decision follows effective monetary policies that have kept inflation well below the 5 per cent target.

Tanzania’s economy is expected to continue its strong growth, supported by a stable food supply and increased foreign exchange from tourism and exports. In 2023, the economy grew by 5.1 per cent, up from 4.7 per cent in 2022. Inflation remained low at 3.1 per cent in May 2024.

The banking sector remains stable, with private sector credit growth averaging 16.4 per cent in the second quarter of 2024. The current account deficit improved, and foreign exchange reserves exceeded $5 billion by the end of June 2024.

The MPC anticipates further economic improvement and plans to implement fiscal consolidation and continue with IMF-supported programs.

Attribution: The Bank of Tanzania statement on Thursday.