KAMPALA, Oct 8 – The Bank of Tanzania kept its benchmark interest rate at 6.25%, maintaining its monetary policy stance as inflation remains within the central bank’s target range and economic growth continues to strengthen.
The central bank targets medium-term inflation of 3% to 5%. Annual inflation stood at 4.3% in August, while September inflation data were due to be released later on Thursday.
The Bank of Tanzania said it considered the current policy stance appropriate to contain inflationary pressures while supporting continued economic expansion.
Tanzania’s economy grew by 6% in the first quarter of 2026, with the central bank estimating growth of more than 6% in both the second and third quarters.
The decision follows a 50-basis-point increase in the Central Bank Rate at the Bank of Tanzania’s previous policy meeting in July, when policymakers tightened monetary conditions in response to inflationary risks.
With inflation currently within the target band and economic activity maintaining momentum, the central bank has opted to hold borrowing costs steady while monitoring the evolution of domestic prices and broader economic conditions.
