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ARTICLE · 18 APRIL 2024

Tanzania Interest Based Monetary Policy Framework And Implication On FDI

Shikana Group
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Tanzania's interest – based monetary policy framework is a move to improve investment climate in Tanzania and to create investor confidence.

TanzaniaGovernment, Public Sector
Amne Suedi
Amne Suedi
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Tanzania Adopts an Interest- based Monetary Policy Framework and Its implication on Foreign Direct Investment in Tanzania

Tanzania's interest – based monetary policy framework is a move to improve investment climate in Tanzania and to create investor confidence. In case you missed it, earlier this year, the Bank of Tanzania (BOT) announced that it is adopting an interest-rate based monetary policy framework so as to stabilize the economy and control inflation. It, furthermore, has set the policy rate at 5.5%

For those who have not read the announcement yet, don't worry I have 1453676.jpg I am going to break it down for you highlighting the key points:

  1. Monetary Policy Definition:

– Monetary policy involves decisions and actions taken by the BOT to influence the money supply in the economy and the cost of borrowing. The BOT uses several tools to define its monetary policy and to achieve its objectives.

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