The Monetary Policy Committee (MPC) of the Bank of Tanzania (BoT) has decided to maintain the Central Bank Rate (CBR) at 5.75 percent for the fourth quarter of 2025, the same level as in the third quarter of 2025, which ended in September.

Speaking during a meeting with bank leaders, financial institutions, and members of the press, the Governor of the BoT and Chairperson of the MPC, Mr. Emmanuel Tutuba, said that this decision is based on the Bank’s projections, which show that the economy will continue to grow and inflation will remain within the target range of 3 to 5 percent.

“The decision to maintain this rate was based on the assessment of inflation trends and economic growth. Inflation stood at 3.4 percent in August and is expected to remain within the target range of 3 to 5 percent. Meanwhile, BoT projections indicate that the economy will continue to grow at a satisfactory pace,” he said.

He added that the implementation of monetary policy in the third quarter of the year succeeded in ensuring sufficient liquidity in the economy, which led to a decline in the seven-day interbank lending rate.

“The Bank used its monetary policy tools, particularly short-term lending to banks (reverse repo operations), to inject liquidity into the economy. As a result, liquidity conditions improved, leading to a decrease in the seven-day interbank lending rate,” Governor Tutuba explained.

Regarding the country’s economic performance, the Governor stated that Mainland Tanzania’s economy grew by 5.4 percent in the first quarter of 2025, compared to 5.2 percent in the same period in 2024. This growth was mainly driven by activities in mining, agriculture, financial and insurance services, construction, and manufacturing.

In Zanzibar, he noted that the economy grew by 6.4 percent in the first quarter of 2025, the same rate recorded in the corresponding period in 2024. This growth was mainly supported by tourism, construction, and agricultural activities.

Meanwhile, the Chairman of the Tanzania Bankers Association (TBA), Mr. Theobald Sabi, stated that the growth in national income, increased foreign exchange liquidity, the strengthening of the Tanzanian shilling, and the improved performance of various sectors of the economy, including tourism, mining, and agriculture, are indicators that confirm the strength and resilience of Tanzania’s economy.

The Central Bank Rate (CBR) is a benchmark rate set by the BoT to guide its monetary operations, including lending to commercial banks. This rate influences interbank lending rates, which are required to remain within a ±2.0% range of the set CBR.