The central bank of Tanzania yesterday announced that the performance of the country’s domestic economy in the first and second quarters was broadly in line with the 2022 growth projection.

 However, in a statement the Bank of Tanzania (BoT) that inflation increased in May and June of 2022, attributing the rise to persistently high prices of imports, but remained within the target of 3-5 per cent for Tanzania mainland and 5 per cent for Zanzibar.

The statement also mentioned that high food, energy and fertilizer prices in the world market pose an upward risk to future inflation.

Credit to the private sector was strong, at 9.9 per cent in 2021/2022, broadly in line with the target, said the statement.

Meanwhile, Tanzania will reduce liquidity over the rest of 2022 in order to tackle a surge of inflation, the central bank’s Monetary Policy Committee (MPC) said yesterday. “The MPC approved the Bank of Tanzania to reduce the speed of expanding liquidity in the remainder of 2022, in order to tame inflationary pressures from the demand side, while safeguarding the growth of the economy,” an MPC statement said.