DAR ES SALAAM (Reuters) -Tanzania’s central bank kept its benchmark interest rate steady on Thursday, saying inflation was forecast to stay stable and economic performance was robust.
It held the rate at 5.75% after a July cut of 25 basis points at its last policy meeting.
“The decision reflects the projection of stable inflation within the target range of 3% to 5%. The growth of the economy is also expected to remain strong,” Bank of Tanzania Governor Emmanuel Tutuba said, reading from a statement.
The East African country’s inflation has oscillated around 3% for the past two years. In August it stood at 3.4% year-on-year, up slightly from 3.3% in July.
Economic growth in the year’s first quarter was 5.4% on the year, up from 5.2% in the corresponding 2024 period, Tutuba said.
“Growth of more than 6% is estimated in the second and third quarters, with similar momentum expected in the fourth quarter, supported by strong public and private investment and robust export performance,” he said.
President Samia Suluhu Hassan’s administration has been pushing ahead with large infrastructure projects such as a hydroelectric power plant and a railway network in the run-up to elections set for October 29.
(Reporting by Nuzulack Dausen;Writing by George Obulutsa;Editing by Alexander Winning and Clarence Fernandez)
