(MENAFN) Tanzania's central bank is going to cut liquidity in the economy as of September as well as October in an attempt to slow the increasing inflation in the east African nation, as shown by a report from the bank's monetary policy committee (MPC) issued on Saturday.
In line with the stated report "In the context of ... high inflation and commodity prices, which has contributed to rising inflationary pressures in the country, the MPC approved for the bank to continue with gradual reduction of liquidity in September and October 2022."
The report also mentioned that "The policy decision aims at reducing inflationary pressures, while safeguarding economic activities."
Inflation in Tanzania surged to 4.6 percent last month from 4.5 percent in the prior month(July), whereas the nation's economy was dealing with several obstacles, such as weak international surge, high commodity costs, tight economic conditions and the recurrence of COVID-19 in some nations, the report noted.
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