DAR ES SALAAM, April 4 (Reuters) – Tanzania’s central bank on Friday kept its key interest rate TZINTR=ECI unchanged at 6%, saying that while inflation was under control global trade tensions posed a risk.
It was the fourth monetary policy meeting in a row that the rate was maintained.
“Maintaining the central bank rate will help to minimise negative spillover effects of trade tariffs and geopolitical conflicts on the economy,” central bank deputy governor Yamungu Kayandabila told a press conference.
This week U.S. President Donald Trump unveiled far-reaching tariffs that have triggered a plunge in world financial markets and drew condemnation from other leaders reckoning with the end of a decades-long era of trade liberalisation.
The Bank of Tanzania targets inflation of 5%, and consumer inflation TZCPIY=ECI has hovered around 3% since it launched its policy rate in January 2024.
The East African country’s economy is projected to grow about 6% this year, from an estimated 5.4% in 2024, its finance minister and central bank governor said in November.
Kayandabila said the country’s foreign exchange reserves stood at around $5.6 billion, enough to cover imports for four-and-a-half to five months.
(Reporting by Nuzulack Dausen; Writing by George Obulutsa; Editing by Alexander Winning and Peter Graff)
