BoT: Tanzania to start using bank rate as basis for monetary policy at end of the year

Dar es Salaam. The Bank of Tanzania will start using interest rates to set the monetary policy by the end of the year, a senior central bank official said.

The director of Economic Research and Policy Johnson Nyela said at a press conference in Dar es Salaam today that the process to start adopting the interest rates to set the monetary policy has reached an advanced stage and would be completed before the end of the year.

“It is difficult to give out the exact date of when we will start using interest rates to set the monetary policy but it should be by the end of this year. There are some steps that we have to take before we effectively start,” Mr Nyela said.

The BoT currently uses a range of other instruments to set the monetary policy, which include foreign currency interventions and local currency’s liquidity control.