Tanzania Interest Rate

Tanzania’s central bank lowered its benchmark interest rate by 25 basis points to 5.75% during its June 2025 monetary policy meeting, following four consecutive periods of holding rates steady. The decision aims to support economic growth while keeping inflation below the 5% target. The annual inflation rate remained unchanged at 3.2% in May 2025, well within the central bank’s target range, and has hovered around 3% since the policy rate was introduced in January 2024. Meanwhile, Tanzania’s economy is projected to grow by approximately 6% in 2025, up from 5.5% the previous year, bolstered by the commencement of electricity generation at the Julius Nyerere Hydropower Dam.