DAR ES SALAAM, July 21 -- THE Bank of Tanzania (BoT) may be nearing the end of its monetary tightening phase, according to the recent macroeconomic forecast.

The forecast indicates that inflation will decline from an average of 3.7 per cent in 2026 to 3.5 per cent in 2027.

As a result, the policy rate is expected to remain at 6.25 per cent until the end of 2026 and then fall to 5.75 per cent in 2027.

Why? Inflation remains steady; recent drops in global energy prices have eased a significant source of imported inflation. The 50-basis-point rate hike on July 3, was notable historically and likely aimed at preemptively strengthening inflation control and stabilising the exchange rate.

Economic growth remains a key policy priority, finan...