THE BANK OF TANZANIA (Bot)
Has Raised Its Rate To 6.0 Percent As It Seeks To Mop Up Excess Liquidity And
Control Inflation In The Economy.
The New Central Bank Rate
(Cbr) Set By Bot’s Monetary Policy Committee (Mpc) Has Been Revised From The
Previous 5.5 Percent.
The Decision Is Based On
The Macroeconomic Forecast Made In March 2024 Which Requires An Increase In The
Scope Of Monetary Policy Actions To Contain The Lingering Inflationary
Pressures Arising From Global Economic Developments.
“The Aim Is To Contain
Inflation And Maintain Economic Growth,” Said Bot Governor Emmanuel Tutuba.
With A Higher Cbr,
Commercial Banks Which Have Excess Liquidity Will Have The Opportunity Of
Trading With The Bot At A Rate Of Not Less Than Six Percent But Not Exceeding
Eight Percent.
The New Cbr Will Be
Applicable In The Second Quarter Of 2024, Which Runs From April 1 To June 30.
In Addition, Said Mr
Tutuba, The Mpc Discussed Global And Domestic Economic Conditions In The First
Quarter Of 2024 And The Outlook For The Remaining Period Of The Year.
On Global Economic
Conditions, The Mpc Noted Improved Performance In Advanced And Emerging Market
Economies. “Output Growth Was Better Than In The Preceding Quarter; Inflation
Continued To Decline, And Monetary And Financial Conditions Moderated.”