Tanzanian central bank slashes discount rate

Central bank cuts discount rate for the first time since 2013, from 16% to 12%

Bank of Tanzania

For the first time in four years, the Bank of Tanzania has reduced the rate it charges commercial banks for borrowing, in an attempt to boost credit growth.

In a statement circulated to commercial banks, the central bank’s deputy governor Natu Mwamba announced it would be lowering its discount rate from 16% to 12%, effective from March 6.

“The discount rate, which is applicable to banks borrowing from the Bank of Tanzania as a lender of last resort, will also be used to discount Treasury

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