Dar Es Salaam — Tanzania’s central bank has kept its benchmark interest rate unchanged at 6.25%, saying current monetary policy remains appropriate to contain inflationary pressures while supporting economic growth.

The Bank of Tanzania (BoT) said it expects inflation to remain within its medium-term target range of 3% to 5%.

Inflation stood at 4.3% year-on-year in August, comfortably within the central bank’s target. September inflation data is expected later on Thursday.

The bank said its current policy stance should help maintain price stability while creating conditions for continued economic expansion.

Economy Continues To Grow

Tanzania's economy expanded by 6% in the first quarter of 2026, according to the central bank, which estimates growth remained above 6% in both the second and third quarters.

The continued expansion points to resilient domestic economic activity despite global and regional pressures affecting trade, commodity prices and financing conditions.

At its previous monetary policy meeting in July, the central bank raised its benchmark rate by 50 basis points, making Thursday’s decision to hold the rate steady a signal that policymakers believe the current level is sufficient for now.

What The Decision Means

Borrowing costs remain unchanged: Keeping the rate at 6.25% means businesses and consumers are not facing an additional increase in the central bank’s benchmark borrowing cost for now.

Inflation remains contained: August inflation of 4.3% is within the BoT’s 3%-5% medium-term target, giving policymakers room to maintain the current stance.

Growth remains strong: With economic growth estimated at above 6% in the second and third quarters, the central bank is balancing price stability with the need to support economic activity.

July rate hike still working through the economy: The 50-basis-point increase in July may continue to influence borrowing, spending and investment decisions, reducing the immediate need for another hike.

September inflation will be closely watched: The latest inflation figures, due later Thursday, could provide an important signal about whether price pressures are continuing to ease or beginning to accelerate.

Source: Reuters

Reporting: Nuzulack Dausen

Writing: Elias Biryabarema

Editing: Alexander Winning