Bank of Tanzania must remain ‘vigilant’ during framework transition

Central bank will need to be careful as it transitions to new monetary policy framework, IMF warns

Bank of Tanzania
Bank of Tanzania

An expected recovery in public spending could prove problematic for the Bank of Tanzania’s plans to switch to a new monetary policy framework in the coming weeks, according to the International Monetary Fund’s latest economic health check.

With government spending expected to increase, the fund has said the central bank will need to be “vigilant” in its monetary policy.

“Sizable liquidity injections from fiscal operations may complicate monetary policy management and increase the volatility in

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