Policy measures to promote credit and lower interest rates by BoT
Habari mpya za fedha Tanzania · maelezo ya Policy measures to promote credit and lower interest ra… · masasisho 2021 · imesasishwa 8 Aug 2026 · habari za uchumi · pato la taifa · uwekezaji
Muhtasari
- When the BoT introduced the policy measures to promote credit to the private sector and lower interest rates, which took effect on July 27, 2021, it said the aim was to increase liquidity in banks and reduce lending.
- In 2021, the lender of last resort unveiled policy measures to promote credit to the private sector and lower interest rates, with the aim of providing a strong impetus for increasing credit to the private sector and.
- The fiscal policy was made after it was learned that the interest rates on loans charged by banks had remained high, at about 17 percent, despite monetary expansion and other measures adopted.
- It was part of the government’s efforts to lessen impact of the COVID pandemic on economic activities and promote growth since the pace of growth slowed to 4.8 percent in 2020 from 7 percent in the preceding year.
- The measures were introduced in accordance with the Bank of Tanzania Act, Cap. 197, and the National Payment Systems Act, Cap. 437, which provides the legal framework for the Central Bank to issue additional directives.