The Bank of Tanzania raised the Central Bank Rate (CBR) by 50 basis points to 6.25% for the quarter ending September 2026 to contain inflation pressures from higher global energy, fertilizer and transportation costs while supporting growth. The CBR had been held at 5.75% from the fourth quarter of 2025 through the second quarter of 2026. Mainland Tanzania’s annual inflation rose to 4.2% in May but remained within the 3-5% target range, while first-half real GDP growth was estimated at around 6% and private sector credit expanded by an average 24%. The current account deficit was estimated at 2.4% of GDP in the year ending June, while foreign exchange reserves hovered around USD 6 billion and covered 4.3 months of projected imports. The Middle East conflict weakened global activity, disrupted energy supplies and trade routes, and increased oil, fertilizer, freight and insurance costs. The Monetary Policy Committee expects moderate food inflation and strong export earnings to help keep inflation within target and will continue monitoring global and domestic developments.
2026-07-03Bank of Tanzania
Bank of Tanzania Raises Central Bank Rate by 50 Basis Points to 6.25%
The Bank of Tanzania raised the Central Bank Rate by 50 basis points to 6.25% for the quarter ending September 2026 to contain inflation pressures from rising global energy, fertilizer and transportation costs while supporting growth. Annual inflation reached 4.2% in May but remained within the 3% to 5% target range.