Tanzania Interest Rate

The central bank of Tanzania raised its key interest rate by 50 bps to 6% at its meeting on April 4th, 2024, marking its highest level since April 2020, to stay ahead of lingering inflationary pressure from global economic developments despite satisfactory local conditions. Policymakers had announced a rate of 5.5% in January after stating earlier that month that they would start using a benchmark interest rate to signal its monetary policy direction. In February 2024, the country’s annual inflation rate stood at 3%, unchanged from the previous month and remaining below the government's target of not more than 5%. Meanwhile, the outlook for the economy which is estimated to have grown about 5% in 2023 from 4.7% in 2022, was bullish and was projected to have expanded by about 5.1% in the first quarter of 2024, supported by public investment, particularly in infrastructure, as part of the measures to facilitate private sector business and investment.