Tanzania central bank will switch to a target interest-rate framework for guiding monetary policy from the second half of the 2023-24 fiscal year, replacing the reserve money system. The change will address the weakening link between money supply and policy variables inflation and output due to financial innovations and a weakening monetary policy transmission. The bank is aiming for real GDP growth of 5.2% in 2023 and 6.1% in 2024, with a target annual headline inflation of 5%.