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The Bank of Tanzania announced its plans to initiate a new monetary policy framework, a complete overhaul intended to regulate inflation and grow the economy in the first week of 2024. The bank assured that the new policy would be introduced before the end of January with the revised regulatory bank rate.
The Bank of Tanzania announced its plans to initiate a new monetary policy framework, a complete overhaul intended to regulate inflation and grow the economy in the first week of 2024. The bank assured that the new policy would be introduced before the end of January with the revised regulatory bank rate. The shift in policy structure indicates that the bank will now rely on interest rates as the major engine for limiting inflation and, by extension, economic growth, rather than setting inflation levels solely based on the denominations in circulation.
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Dr. Sulieman Misango, the bank’s director of economic research and policy, noted that the initial rate would be valid for the next 3 months after which it would be subject to a revision
The director went ahead to heed that the realization of the goal of this policy shift would not be immediate. To regulate inflation and create currency stability, he urged that people should exercise patience as the interest-rate strategy slowly begins to take shape. This policy shift also falls in line with the country’s goal of regional cooperation as it is set to put Tanzania on the same playing field as other East African countries.
