Tanzania’s central bank kept its benchmark interest rate unchanged at 6.25% for the fourth quarter, maintaining a tighter monetary policy stance after raising the rate earlier this year to contain inflationary pressures.
The Bank of Tanzania said on Thursday that it had maintained the Central Bank Rate at 6.25%, according to a monetary policy decision. The rate was raised from 5.75% to 6.25% in July after the central bank cited risks from higher global energy, fertiliser and transportation costs linked to the Middle East conflict.
The latest decision comes as Tanzania’s economy continues to expand while inflation remains within the central bank’s target range. Official data showed annual inflation at 4.3% in August, up from 4.0% in June but still within the government’s 3% to 5% target range.
The Bank of Tanzania has projected economic growth of about 6% in 2026. Gross domestic product expanded 6.0% year-on-year in the first quarter, supported by agriculture, financial and insurance services, and transport and storage activities.
The central bank’s decision also comes against a backdrop of stronger domestic credit growth. Private-sector credit growth accelerated sharply during the first half of the year, while the banking sector continued to provide support for economic activity.
The bank has sought to balance inflation risks with the need to maintain economic growth. Its July rate increase was intended to prevent external price pressures, particularly from energy and transport costs, from feeding more broadly into domestic inflation.
Tanzania’s foreign-exchange position has also strengthened. The central bank said international reserves had exceeded $6 billion, equivalent to about 4.5 months of import cover, supported partly by its gold purchase programme.
By leaving the benchmark rate unchanged, the central bank signalled that its current monetary policy setting remains appropriate as it monitors inflation, global commodity prices and domestic economic conditions.
The 6.25% rate remains Tanzania’s highest Central Bank Rate in recent years after the increase from 5.75% in July. The Bank of Tanzania’s latest decision keeps borrowing conditions broadly unchanged for businesses and consumers as the economy enters the final quarter of 2026.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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