Tanzania Central Bank Holds Key Interest Rate Steady

DAR ES SALAAM (Reuters) – Tanzania’s central bank kept its key interest rate unchanged at 6% on Thursday.

In the two quarters leading up to September, the central bank maintained the benchmark rate at 6%, up from 5.5% announced in January when the new rate was introduced.

The bank’s target for inflation is 5%, but consumer inflation has remained comfortably below that, despite growing pressure on the shilling.

Inflation rose to 3.1% year-on-year in August, up from 3.0% the previous month, according to data from the statistics office.