Tanzania central bank cuts policy rate by 25 basis points

03 July 2025 - 16:15 By Nuzulack Dausen
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Tanzania's President Samia Suluhu Hassan arrives to address parliament before its dissolution ahead of the October general elections in Dodoma, Tanzania, on June 27 2025. Hassan's administration has been pushing ahead with large-scale infrastructure projects. File photo.
Tanzania's President Samia Suluhu Hassan arrives to address parliament before its dissolution ahead of the October general elections in Dodoma, Tanzania, on June 27 2025. Hassan's administration has been pushing ahead with large-scale infrastructure projects. File photo.
Image: REUTERS/Stringer

Tanzania's central bank lowered its benchmark interest rate by 25 basis points to 5.75% in a decision announced on Thursday.

The Bank of Tanzania targets inflation of 5%, and consumer inflation has hovered around 3% since it launched its policy rate in January 2024.

The East African country's government sees economic growth rising to 6% this year, up from 5.5% last year, helped by the start of electricity generation at the Julius Nyerere hydropower dam.

President Samia Suluhu Hassan's administration has been pushing ahead with large-scale infrastructure projects like the dam and a railway network ahead of elections due in October.

Reuters


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