Tanzania Bankers Association Moves to Lower Interest Rates

Tanzania Bankers Association (TBA) has said some banks after a thorough simulation will start lowering lending interest in near future.

TBA Charman Abdulmajid Nsekela told the 20th Conference of Financial Sector (COFI) that the banking sector as part of the society wants the market to have affordable interest rates to push the economy forward.

“After simulation the banks now are ready to lower interest rates…in coming days you will see some start lowering the rates,” Mr Nsekela, who is also a CRDB Bank managing director, said yesterday 25fh, November 2021.

The Chairman though did not say the percentage to be lowered but promised President Samia Suluhu Hassan, who is a chief guest of COFI, that banks will start doing so.

BoT Governor Prof Florens Luoga said after some central bank monetary interventions they are expecting financial institutions to also lower market interest rates as well.

” (BoT) have made a number of policy interventions we want loans, especially to agriculture to be less than 10 per cent,” Prof Luoga said.

Some of the interventions are like lower statutory minimum reserves form 7.0 to 6.0 per cent last July.

BoT also set aside some 1.0tri/- fund that is loaned to commercial banks at 3.0per cent for enabling them to lend agricultural processing ingredients project at less than 10 per cent.