The Bank of Tanzania’s Monetary Policy Committee held the Central Bank Rate (CBR) at 6.25% for the quarter ending December 2026, judging the restrictive stance appropriate to contain underlying inflation while fostering growth and keep inflation within the 3%-5% medium-term target range. The CBR had been held at 5.75% in January and April before a 50-basis-point increase to 6.25% in July. Mainland Tanzania’s inflation rose to 4.3% in August, while economic growth was 6% in the first quarter and was estimated above 6% in each of the next two quarters, with private-sector credit expanding strongly and the banking sector remaining stable and resilient. The current account deficit was 2.5% of gross domestic product in the year ending September, while foreign exchange reserves remained above USD 6 billion and covered 4.3 months of imports. Globally, the Middle East conflict continued to disrupt energy and fertilizer supplies, weigh on growth and stall disinflation, although elevated gold prices supported foreign exchange earnings and reserve accumulation. The MPC said policy would remain agile and flexible and stood ready to respond if inflationary pressures became more persistent and broad-based.
Bank of Tanzania Holds Central Bank Rate at 6.25%
The Bank of Tanzania held the Central Bank Rate at 6.25% for the quarter ending December 2026 to contain underlying inflation while supporting growth and maintaining inflation within its 3%-5% medium-term target. Mainland inflation reached 4.3% in August, while the banking sector remained resilient and foreign exchange reserves exceeded USD 6 billion.