Tanzania Keeps Key Policy Rate Steady at 5.75%

The Bank of Tanzania held its benchmark interest rate unchanged at 5.75% during the January 2026 monetary policy meeting, marking the second consecutive hold. The central bank highlighted that the decision reflects a supportive stance toward sustained economic growth, noting that inflation remains well-contained within the 3%-5% target range. Annual consumer price growth in November eased slightly to 3.4%, following a 3.5% rise in October, continuing a pattern of relative stability observed over the past two years. Meanwhile, the central bank projects the economy to expand by 5.9% in 2025, driven by strength in agriculture, mining, and construction sectors.

The Bank of Tanzania held its benchmark interest rate steady at 5.75% during its October 2025 monetary policy meeting, following a 25 basis point cut in July. Governor Emmanuel Tutuba stated that the decision reflects the outlook for stable inflation within the target range of 3% to 5%, alongside expectations of continued robust economic growth. Tanzania’s annual inflation rate inched up to 3.4% in August 2025 from 3.3% in July, marking the highest level since June 2023. Still, the latest figure remains broadly stable, hovering around 3% over the past two years and staying within the central bank’s target range. Meanwhile, the country's economy grew by 5.4% year-on-year in the first quarter of 2025, maintaining the same pace of expansion as in the previous quarter.

Tanzania’s central bank lowered its benchmark interest rate by 25 basis points to 5.75% during its July 2025 monetary policy meeting, following four consecutive periods of holding rates steady. The decision aims to support economic growth while keeping inflation below the 5% target. The annual inflation rate remained unchanged at 3.2% in May 2025, well within the central bank’s target range, and has hovered around 3% since the policy rate was introduced in January 2024. Meanwhile, Tanzania’s economy is projected to grow by approximately 6% in 2025, up from 5.5% the previous year, bolstered by the commencement of electricity generation at the Julius Nyerere Hydropower Dam.