TANZANIA — THE private sector credit growth has been growing at a decreasing rate since quarter four last year, but still remained in the
The slowdown in private sector credit growth has been in line with monetary policy implementation, gauging the growth towards a set target of 16.4 per cent, according to the Monetary Policy Statement published in February 2024. Several factors contribute to this decline, each with significant implications to the Tanzania's economy.To control inflation, the central bank decided to increase the Central Bank Rate from 5 per cent in the first quarter of this year to 6 per cent in the second quarter.
Additionally, new regulatory measures aimed at improving the banking sector's stability might inadvertently tighten credit conditions.