The Bank of Tanzania has decided to keep its Central Bank Rate (CBR) at 6.25%.
The decision comes as inflation remains relatively contained. Annual inflation stood at 4.3% in August, comfortably within Tanzania’s medium-term target range of 3% – 5%.
For businesses and borrowers, the decision means there is no immediate change in the central bank’s monetary stance. The Bank of Tanzania had raised the CBR by 50 basis points in July, from 5.75% to 6.25%, amid concerns over inflationary pressures, including higher oil prices.
Growth gives the central bank a breather
Tanzania’s economy grew by 6% in the first quarter of 2026, while the central bank expects growth to remain above 6% in the second and third quarters.
Inflation under control and growth holding up gives the central bank some breathing room.
Rather than pushing borrowing costs higher, policymakers appear comfortable waiting to see how prices, global commodity markets and domestic economic activity develop.
The decision also comes at a time when Tanzania’s external position has strengthened. The central bank says foreign exchange reserves have risen above $6 billion, equivalent to about 4.5 months of import cover, while reserves including non-monetised gold are around $8.7 billion.
What it means
The central bank is not declaring victory over inflation, but neither does it see a need for another rate increase at this point. Businesses get a more predictable interest-rate environment, while the wider economy continues to benefit from relatively strong growth.
The bigger question will be whether Tanzania can maintain this balance if global oil prices, exchange-rate pressures or other external shocks begin pushing inflation higher.