DAR ES SALAAM, July 13 -- THE Bank of Tanzanias 50-basis-point rate hike is expected to have a limited impact on equities, with investors likely to remain focused on company earnings, dividend prospects and long-term growth opportunities rather than higher borrowing costs.

Alpha Capital Executive Director, Mr Gerase Kamugisha, said the move was expected to reinforce confidence in the countrys macroeconomic stability rather than trigger a broad shift away from equities.

“The policy rate adjustment should be interpreted more as a signal of the central banks commitment to maintaining price stability than as a development that fundamentally changes the outlook for listed companies,” he said.

The Bank of Tanzania recently raised...