DAR ES SALAAM, April 2 (Xinhua) -- Tanzania's central bank has maintained its benchmark lending rate at 5.75 percent for the second quarter (Q2) of 2026, citing the need for a cautious monetary policy stance amid global uncertainties, an official said on Thursday.
Yamungu Kayandabila, deputy governor of the Bank of Tanzania responsible for Economic and Financial Policies, said the decision was made during the Monetary Policy Committee (MPC) meeting on Wednesday.
"The MPC resolved to keep the central bank rate unchanged at 5.75 percent to balance risks to inflation and the economic growth outlook, particularly in light of ongoing geopolitical tensions in the Middle East," Kayandabila told a news conference in the port city of Dar es Salaam.
He noted that the tensions have disrupted global trade, investment flows, and overall economic stability, necessitating prudence in policy decisions.
In addition, the MPC decided to narrow the central bank rate corridor from 200 basis points to 150 basis points, effective April 2026, in a move to enhance the effectiveness of monetary policy.
Following this adjustment, the target band for the 7-day interbank rate will range between 4.25 percent and 7.25 percent during the second quarter.
"The central bank will implement monetary policy to ensure the 7-day interbank interest rate remains within the established corridor," Kayandabila added. ■