Africa-Press – Tanzania. THE central bank has no plan to cap loan interest rates, since the country now practices free monetary policy across the board.
The government said regulating interest rates equates to backsliding the financial sector to the old era of fixing everything, before economic reforms of opening up the banking sector in the early 1990s.
The Minister for Finance and Planning, Dr Mwigulu Nchemba, said in Dodoma on Sunday that the government does not want to go back to the era of fixing rates since it practices a free economy.
“We (BoT and Finance Ministry) do not want to go back to the era of fixing rates, like we did for exchange rate. The market will determine the rates.
“What we are trying to do is for the central bank to put in place an accommodative policy to influence rates to go down,” Dr Nchemba said, when presenting his ministry’s success in the last 60 years after ‘Uhuru’.
He further said, the banking sector is dominated by the private sector and “it is not wise for the government to control the sector.”
“Let the market decide the fate of the loan interest rates instead of BoT capping them,” the minister told journalists in Dodoma.
For More News And Analysis About Tanzania Follow Africa-Press
