NAIROBI, Aug 25 (Reuters) - Tanzania’s central bank has cut its discount rate to 7 percent from 9 percent to help spur credit growth.
The central bank said in a circular to commercial banks seen by Reuters that the new rate becomes effective on Monday. It comes as private sector credit growth has steeply declined in the past two years. A year ago, the Bank of Tanzania cut its discount rate from 12 percent to 9 percent.
Reporting by Omar Mohammed Writing by Maggie Fick Editing by Alison Williams