DAR ES SALAAM, Jan. 8 (Xinhua) -- Tanzania's central bank announced on Wednesday that it has decided to maintain the key interest rate at 6 percent for the first quarter of 2025.
Governor of the Bank of Tanzania Emmanuel Tutuba said that keeping the central bank rate (CBR) unchanged will ensure adequate liquidity in the economy, anchor inflation expectations below the 5 percent target, and support robust economic growth of about 5.7 percent in the first quarter of 2025.
Speaking at a news conference in the port city of Dar es Salaam, Tutuba said that maintaining the CBR would help mitigate exchange rate pressures, thereby limiting its impact on inflation and reducing incentives to transact in foreign currency within the country.
In January 2024, the central bank officially introduced an interest rate-based monetary policy framework, setting the policy rate at 5.5 percent for the first quarter of 2024. The rate was subsequently raised to 6 percent for the third and fourth quarters of 2024.
