The Monetary Policy Committee (MPC) of the Bank of Tanzania (BoT) has lowered the Central Bank Rate (CBR) from 6% to 5.75% for the third quarter of the year, covering the period from July to September 2025.

The Central Bank Rate (CBR) is the policy rate used by the Bank of Tanzania in its transactions with commercial banks, which are expected to operate within a margin of ±2.0 percentage points of the set rate.

Speaking during a meeting with bank executives and the press, the Governor of the Bank of Tanzania and Chairman of the Monetary Policy Committee, Mr. Emmanuel Tutuba, said the decision reflects the Committee's confidence in the continued strengthening of economic activities and the containment of inflation.

“This decision reflects the Committee’s confidence in the inflation outlook, Inflation has consistently remained within the target band of 3–5 percent. This is supported by prudent monetary and fiscal policies, the onset of the harvest season, and exchange rate stability”. Governor Tutuba said.

He added that the Central Bank will implement its monetary policy to ensure that the 7-day interbank rate stabilizes within the corridor of 3.75 to 7.75 percent.

Commenting on the country's economic performance, the Governor noted that it continues to strengthen, driven by substantial government investment in infrastructure and increased private sector activity, supported by improved business conditions.

He further emphasized that external shocks pose minimal risk to the economic outlook, owing to the country’s diversified production structure and the consistent implementation of growth-enhancing policies and programs that promote economic growth, which are expected to cushion the economy from such shocks.

In response to a question from the media, the Chairperson of the Tanzania Bankers Association, Mr. Theobald Sabi, stated that the reduction in the CBR could contribute to a decline in interest rates charged by commercial banks. However, he noted that lending rates are also influenced by other factors such as market forces and the risk assessment conducted on borrowers.

The Central Bank Rate for the fourth quarter of 2025 will be announced in October this year, in accordance with the Monetary Policy Committee’s annual meeting calendar.