Tanzania’s central bank has lowered its benchmark interest rate by 25 basis points to 5.75%, aiming to support economic growth while keeping inflation stable below its medium-term target of 5%.
The decision comes after four consecutive periods of holding rates steady.
Governor Emmanuel Tutuba stated that inflation is expected to remain below target due to the onset of the harvest season and exchange rate stability.
The East African country’s economy is projected to grow by approximately 6% in 2025, up from 5.5% the previous year, driven by large-scale infrastructure projects like the Julius Nyerere Hydropower Dam.
President Samia Suluhu Hassan’s administration has been pushing ahead with these projects ahead of elections due in October.
