BabuK
JF-Expert Member
- Jul 30, 2008
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Bank of Tanzania (BoT)
Tanzania's economy is projected to sustain growth of above 7 per cent in 2014/15, backed by ongoing investments in infrastructure particularly roads, railways and power generation expected to further boost industrial production and provision of services.
The growth will further be reinforced by projected stability of global oil prices, favourable weather condition as well as recovery of global economy which could increase the country's export earnings.
This is according to Bank of Tanzania (BoT) June 2014 Monetary Policy Statement, which says the aim is to attain real Gross Domestic Product (GDP) growth of 7.3 per cent based on the projected GDP growth of 7.2 per cent of 2014, and 7.4 per cent for 2015 while maintaining inflation at single digit.
The statement says the 2014/15 fiscal policy will focus on continued implementation of five-year development plan, MKUKUTA II and MKUZA particularly on Big Results Now (BRN) initiatives, while observing budget deficit?
The statement says this is possible through continued improvement in tax policy and administration as well as expenditure and debt management.
The policy will focus on annual growth of average reserve money not exceeding 14 per cent and annual growth not exceeding target of extended broad money (M3) and annual growth of private sector credit not exceeding 16 per cent consistent with the growth target of M3.
The bank says in 2014/15 it will remain vigilant to risks posed by projected food supply shortages in the East African Community (EAC) region as well as developments in global economy which could exert inflationary pressure and take appropriate measures.
The exchange rate will remain market determined and the bank will continue to participate in foreign exchange market, primarily for liquid management while taking appropriate actions to dampen excessive volatility in the exchange rate.
According to the policy this will be implemented while ensuring adequate level of foreign reserves is maintained and also being mindful of the country's decision to allow free movement of capital within EAC as agreed under Common Market Protocol with effect from July 2014.
During July 2013-April 2014 growth in monetary aggregates was kept within targets with extended broad money supply (M3) growing to an average of 13.1 per cent compared to the target of 15.0 per cent for end of June.
The annual growth of credit to the private sector averaged 16.0 percent, compared to the projected growth limit of June 19.6 per cent.
Based on performance in the first ten months of 2013/14, the bank is confident the outturn in monetary aggregates will be within June 2014 targets.
SOURCE: THE GUARDIAN