Tanzania Monetary Policy Committee (MPC) sat on August 5, 2022, to assess the conduct of monetary policy in May and June and economic performance.

The committee’s report shows that the implementation of the monetary policy is pleasing, for it has maintained adequate liquidity in the bank for lending to the private sector despite facing the rising inflationary pressures from high import prices, which impaired the fast growth of the economy.

MPC report has also shown that in the 1st and 2nd quarters of 2022, the country’s economic growth went in line with the 2022 economic projection of 4.7% and 5.4% for Tanzania Mainland and Zanzibar, respectively.

Despite inflation increase between May – June 2022 that was attributed by high prices of imports, but remained within the target of 3-5% for Tanzania mainland and 5% for Zanzibar.

Money supply expanded consistent with the target. Credit to the private sector was strong at 9.9% in 2021/2022, broadly in line with the target.