Tanzania switches to interest rate-based monetary policy

Central bank had previously used quantity-of-money approach

Map of Tanzania

The Bank of Tanzania on January 19 moved away from a quantity of money approach towards monetary policy, and adopted a framework based on interest rates. 

The central bank said in a notice that the new framework would “improve the effectiveness of monetary policy in maintaining low and stable inflation”. It added it had made the change to align its approach with those of other central banks in east Africa and to ensure the stability of the exchange rate.

The monetary policy committee set the new

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