Tanzania overhauls its monetary policy, as it prepares to announce its new bank rate

Keeping in line with its new monetary policy, the Bank of Tanzania has given a two-week notice to announce its new regulatory bank rate. A week ago, the bank announced its plans to initiate a new monetary policy framework, a complete overhaul intended to regulate inflation and grow the economy. The bank assured that the new policy would be introduced before the month ran out.

As reported earlier, the BoT disclosed that it would be pivoting from a ‘quantity of money’ style monetary policy to a more updated interest rate-based monetary policy.

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.

On Wednesday, Dr. Sulieman Misango, the bank’s director of economic research and policy, said that the Monetary Policy Committee has scheduled a meeting to discuss and conclude on the new policy rate, which would be relayed to the public immediately.

Source: Business Insider