The Bank of Tanzania (BoT) has continued to implement a cautious monetary policy stance in balancing between growth and inflation in the current unpleasant global environment, which have negative spillover effects to the economy.

As a result, extended broad money supply grew in line with target for 2022/23, averaging 11 per cent during the quarter ending September this year compared with the target of 10.3 per cent.

According to the BoT Economic Bulletin for the quarter ending September, the outturn was supported by strong growth of credit to the private sector attributable to ongoing recovery of economic activities, improved business conditions and supportive monetary policy.

Domestic banking system credit to the private sector and central government grew at an average of 27.9 per cent, compared with 8.1 per cent in the quarter ending September last year.

The credit to the private sector grew by 20.9 per cent, significantly higher than the average of 4.0 per cent in the corresponding quarter last year mainly owing to recovery of economic activities from the effects of Covid-19, improved business environment, and supportive monetary policy conditions.

All major economic activities registered positive growth of credit during the reviewed quarter, except hotels and restaurants.

Agriculture sector continued to record the highest growth rate, attributable to the monetary policy measures rolled-out to support cost effective credit intermediation to the sector.

Meanwhile, personal loans remained dominant in terms of share in total outstanding loans, followed by loans to trade, manufacturing and agriculture activities.