Tanzania Jan. M3 money supply rises 26.3% y/y
TL;DR
Tanzania's M3 money supply hit a record high in December 2025, growing 26.3% year-over-year, as the central bank maintains a neutral policy stance amid inflation concerns and economic growth.
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Tanzania Jan. M3 money supply rises 26.3% y/y
Tanzania’s broad money supply (M3) reached 61,524.30 TZS billion in December 2025, marking a 615.24 TZS billion increase from November 2025’s 60,858.60 TZS billion according to Trading Economics. This level represents an all-time high since records began in April 2000, when M3 stood at 1,184.41 TZS billion. The year-over-year growth rate for M3 is reported at 26.3%, reflecting sustained expansion in the monetary base. The Bank of Tanzania has maintained a key policy rate of 5.75% since at least November 2025, signaling a neutral stance amid inflationary pressures.
While the December inflation rate recorded its lowest level in six months, food inflation remains above a five-year high, and annual inflation hit 4.3% in March 2025, up from 3.9% in February 2025. Meanwhile, Tanzania’s economy expanded by 5.6% year-on-year in the first quarter of 2026, supported by agricultural output and infrastructure investments. Fitch Ratings recently assigned Tanzania its first-ever ‘B+’ credit rating, citing improved fiscal discipline and growth prospects.
The surge in M3 aligns with broader monetary policy goals to support economic activity while balancing inflation risks. Analysts will closely monitor upcoming monetary policy statements and inflation data to assess the central bank’s response to evolving economic conditions according to data.
(https://tradingeconomics.com/tanzania/money-supply-m3): Bank of Tanzania, as reported by Trading Economics.
