In a statement released to the media yesterday, BoT Governor Professor Florens Luoga said the situation is facilitating improved liquidity in the banking sector.
The BoT’s Monetary Policy Committee (MPC) meeting on Monday this week was satisfied with the implementation of the policy in September and October, he said, noting that liquidity in the banking sector has also contributed to stable and lower interest rate levels.
The committee was also convinced that credit growth in the private sector would continue to improve due to the recovery of the global economy, as well as the central bank’s policy measures to stimulate lending at lower rates, a he declared.
Foreign reserves currently stand at $ 6.7 billion / -, enough to cover seven months of planned importation of goods and services, he said.
The pace of global economic growth has been slightly slower than previously expected due to the re-emergence of COVID-19 infections in some countries and rising oil prices, but is expected to accelerate in the future, a the statement said, saying global growth will continue to strengthen Tanzania. economy.
The committee believes that increasing global fuel production will lower energy prices.
The monetary policy committee urged to oversee sustainable food security as it strengthens the value of the Tanzanian shilling by reducing inflationary pressures.
Inflation ranged from three to five percent as the target, and is expected to stay within that range in accordance with regional agreements, in particular the East African Customs Union protocol, he said.
“Revenue collection has been satisfactory, with tax revenue exceeding 90% of the target. Zanzibar’s economy grew 6.5% in the second quarter of 2020 against negative growth of 1.4% in the first quarter of 2020, ”the statement read, indicating that inflation in Zanzibar remained below target. five percent, with revenue collection reaching 73.6% of target.
Based on the review of recent economic trends, as well as inflation projections likely to remain within target, the committee approved the continued implementation of the current monetary policy by the BoT, increasing the liquidity for the period November-December 2021 to further strengthen the economy. , adds the press release.