Tanzania’s central bank is likely to lower liquidity in the economy in September and October to slow increasing inflation in the east African country. The statement was issued by the bank’s monetary policy committee (MPC) on Saturday.

Considering elevated inflation and commodity prices, which have contributed to growing inflationary pressures in the country, MPC approved for the bank to continue with a gradual reduction of liquidity in September and October 2022. The said policy strives to reduce inflationary pressures while safeguarding economic activities at the same time.

The inflation in Tanzania increased to 4.6 per cent in August from 4.5 per cent the previous month. In the past few months, the country’s economy has encountered a range of challenges, including weak global growth, high commodity prices, tight financial conditions and the recurrence of COVID-19 in some countries.

The central bank of the United Republic of Tanzania, Bank of Tanzania is headquartered in Dodoma. It it is responsible for issuing the national currency, the Tanzanian shilling.