BoT maintains CBR at 5.75 per cent

DAR ES SALAAM: THE Bank of Tanzania (BoT) has maintained the Central Bank Rate (CBR) at 5.75 per cent for the fourth quarter, citing stable inflation expectations as the key reason for its decision.

In the third quarter ending September, the Bank of Tanzania (BoT) lowered its benchmark interest rate by 25 basis points to 5.75 per cent, reflecting confidence in the inflation outlook. Following its meeting on Wednesday, the Monetary Policy Committee (MPC) decided to maintain the Central Bank Rate (CBR) at that level.

The BoT will continue to manage monetary policy to keep the 7-day interbank rate within a two-percentage-point corridor above or below the CBR. The BoT Governor, Mr Emmanuel Tutuba said yesterday in Dar es Salaam that the decision reflects continued confidence in inflation trends.

“The move is based on projections of stable inflation within the 3–5 per cent target range, which is expected to hold in the near term,” he noted.

“The implementation of monetary policy was successful, as liquidity in the interbank market improved significantly,” he said.

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Mr Tutuba noted that inflation continues to decline, falling below central bank targets in most economies. As a result, many central banks have maintained or eased policy rates to support growth.

He said the MPC observed steady domestic economic strengthening, driven by strong performance in mining, agriculture, finance, construction and manufacturing. Risks to the outlook remain low, supported by a diversified economy and consistent, growthfocused policies.

On global trends, he added that while growth in advanced and emerging markets has slightly slowed, it remains resilient despite geopolitical tensions and trade pressures. “In the fourth quarter, global activity is expected to strengthen,” he added.

The Governor highlighted steady economic resilience, noting the Shilling’s 8.4 per cent appreciation against the US dollar, up from 0.7 per cent last quarter and robust foreign reserves of 6.4 billion US dollars covering over five months of imports, exceeding EAC benchmarks.

“Liquidity is expected to improve further, supported by seasonal tourism, cash crop harvests and high gold prices,” he said.

The economy is projected to grow over 6 per cent this quarter, supported by prudent policies, stable food supplies, exchange rate stability, reliable electricity and moderate oil prices.

The current account deficit narrowed to 2.4 per cent of GDP by September 2025, down from 3.8 per cent the previous year, driven by increased exports of crops, tourism and gold.