Tanzania Central Bank To Reduce Liquidity To Tackle Inflation

Tanzania’s central bank will reduce liquidity in the economy in September and October to slow rising inflation in the east African country. <br />The bank’s monetary policy committee says in the context of high inflation and commodity prices, which have contributed to rising inflationary pressures in the country, the MPC approved for the bank to continue with a gradual reduction of liquidity in September and October 2022. <br />Inflation in Tanzania rose to 4.6% in August from 4.5% the previous month, while the country’s economy was facing a range of challenges, including weak global growth, high commodity prices, tight financial conditions and the recurrence of COVID-19 in some countries.