Inflation To Drive Monetary Policy

May 2008 | Economic Analysis

BMI View: With food inflation forecast to remain high through 2008, we believe the BOT is likely to increase the size of its T-bill auctions, which will in turn, lead to higher T-bill rates. At the same time, ongoing sales of foreign exchange, enacted to control domestic liquidity, should allow the shilling to appreciate towards our 2008 end year target of TZS1,110/US$.

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