Tanzania’s central bank set its benchmark interest rate at 5.5% for Q1 2024, a shift to an interest-rate-based monetary policy framework from a monetary-targeting framework used for the past 28 years. This move aligns Tanzania with other East African countries and is a step towards a monetary union and single currency for the EAC. The central bank aims to maintain inflation within the medium-term target of 5% while supporting economic growth of at least 5.5% for 2024. In December, inflation slowed to 3% YoY from 3.2% a month earlier.