The Monetary Policy Committee (MPC) has decided to keep the Central Bank Rate (CBR) unchanged at 6 percent for the quarter ending December 2024.

In a statement issued on Thursday, October 3rd, Bank of Tanzania (BoT) Governor Emmanuel Tutuba noted that this decision was based on projections indicating that inflation will remain low, aligning with the target of 5 percent.

“The MPC also anticipates steady growth in line with improving domestic and global conditions,” he stated.

The International Monetary Fund (IMF) projects a global growth rate of 3.2 percent for 2024, while the World Bank estimates it at 2.6 percent.

“This growth is expected to stimulate domestic economic activities. Inflation is projected to continue its decline due to the lagged effects of tight monetary policy and decreasing commodity prices, particularly for crude oil and fertilizers,” the Governor explained.

He added that most central banks are expected to either cut or maintain their policy rates, highlighting that central banks in the SADC and EAC economic blocs have recently adopted this trend.