BoT: Central Bank Rate to remain at 6 percent

The Monetary Policy Committee of the Bank of Tanzania (BoT) has decided to maintain the Central Bank Rate (CBR) at 6 percent for the second quarter of 2025.

"This decision by the Committee aims to safeguard the economy from potential impacts arising from global trade restrictions and geopolitical conflicts," said the Deputy Governor of the Bank of Tanzania, Dr. Yamungu Kayandabila.

He made the announcement on April 4, 2025, in Dar es Salaam before bank executives, financial institutions, and journalists, following the Committee meeting held on April 3.

He further stated that the Bank of Tanzania will continue to implement monetary policy to ensure that inflation and the pace of economic growth remain within targets, and that the interbank lending rate stays within the prescribed range.

"The Central Bank will continue to implement monetary policy to ensure the seven-day interbank lending rate remains within the 4-8 percent range. Inflation and the pace of economic growth in the country are expected to remain within target," he said.

Regarding the economic outlook, the Monetary Policy Committee reported that findings from the Market Survey Perception, views from various corporate leaders in the country, and an assessment by Moody’s in March 2025, show that Tanzania maintained a B1 rating with a stable outlook.

Additionally, global economic conditions in the first quarter of 2025 improved, with economic activity in both developed and emerging economies continuing to strengthen. This trend is expected to continue in the coming quarters of 2025.

However, these positive economic projections could be affected if global trade restrictions and geopolitical tensions escalate, Dr. Kayandabila noted while reading the Committee's report.

On his part, the Chairman of the Tanzania Bankers Association (TBA), Mr. Theobald Sabi, commended the Central Bank and the Government at large for effectively managing the country's economy and thanked BoT for the strong collaboration with banks, which contributes to the growth of the financial sector.