Tanzania monetary policy and capital market developments

The Bank of Tanzania increased the Central Bank Rate (CBR) from 5.75 percent to 6.25 percent to control inflation and maintain economic stability.

Members of Parliament expressed concerns that this hike could lead to higher commercial lending rates, potentially hindering economic activity, the implementation of the 2026/27 national budget, and private sector credit. While lawmakers warned that increased borrowing costs might make financing difficult for businesses, Deputy Finance Minister Laurent Luswetula noted that the government does not directly determine the lending rates set by commercial banks.

Parallel to these monetary policy shifts, Tanzania’s capital markets experienced significant growth. The value of capital markets rose 46.09 percent year-on-year to TZS 75.5 trillion in the quarter ending June 30, 2026, driven largely by domestic market capitalization. On the Dar es Salaam Stock Exchange, equity turnover surged by 124.77 percent during the week of August 24 to August 28, 2026, with banking stocks such as NMB Bank Plc and CRDB Bank Plc dominating activity. However, foreign investors maintained a net selling position on the exchange.