The Bank of Tanzania’s Monetary Policy Committee left the Central Bank Rate (CBR) unchanged at 5.75 percent for the second quarter of 2026, citing the need to balance emerging inflation pressures from higher energy costs against a still-robust growth outlook amid Middle-East geopolitical tensions. The CBR has been steady at 5.75 percent since a 25-basis-point cut in July 2025. Alongside the hold, the Committee narrowed the policy corridor to ±150 bp, setting a 4.25–7.25 percent target range for the 7-day interbank rate and instructed the central bank to guide market rates within this band. Inflation averaged 3.3 percent in Mainland Tanzania and 4.5 percent in Zanzibar in the first quarter—within the 3–5 percent target—and is expected to remain contained, while GDP grew an estimated 6.2 percent and 6.7 percent respectively, with Q2 growth projected at 6.1 percent and 6.6 percent; private-sector credit expanded 22.8 percent and the banking sector’s non-performing loan ratio fell to 2.9 percent. Externally, the current-account deficit narrowed to 2.2 percent of GDP in the year to March, foreign reserves exceeded USD 6.2 billion (4.8 months of imports) and the exchange rate stayed broadly stable. The MPC noted crude oil prices have surged above USD 100 per barrel, intensifying global inflation risks and policy uncertainty, and said it will keep assessing the economic impact of the Middle-East conflict ahead of its July meeting.
Bank of Tanzania 2026-04-02
Bank of Tanzania holds CBR at 5.75% for Q2 2026
Bank of Tanzania’s Monetary Policy Committee kept the Central Bank Rate at 5.75 % for Q2 2026 and narrowed the policy corridor to ±150 bp, guiding the 7-day interbank rate to 4.25–7.25 %. The decision seeks to temper energy-driven inflation pressures while growth, credit expansion and external buffers remain robust and inflation stays within the 3–5 % target.