This is an extract from the Bank of Tanzania (BOT) January 2017

Francis12 said:

This is an extract from the Bank of Tanzania (BOT)
January 2017
“In December 2016, twelve-month headline inflation stood at 5.0 percent, up from 4.8 percent in the preceding month, but lower than 6.8 percent in December 2015. The inflation outrun in December was aligned with the medium-term target. The uptrend of headline inflation in December 2016 was entirely driven by food and non-alcoholic beverages inflation rate, as the other main components of headline inflation eased. On month-to-month basis, headline inflation was 0.7 percent, almost 0.2 percentage increase from the corresponding period in 2015.”

My opinion on this:
Inflation rate and interest rates in the financial institutions are sisters; when one goes high and the other follows. They rarely have such a big difference where IR at 5.0% while interest goes up to 28% in some banks. The possible explanation is:
1. The inflation rate of 5.0% is politically motivated (Not realistic), or
2. The financial institutions (e.g. Banks) are overcharging the clients
In BOT’s observation, food counted the most part of inflation. The price of food is high and unsteady, and even higher than when the inflation rate was in double figures.
My Take: The report is not a reflection of reality!
If given a chance, what will CHADEMA do?
Our policy stand remains to be clear in that TRANSPARENCY drives the decisions-making process. The economy remains to be PEOPLE centered with engagement of all stakeholders at all stages of implementation.
Private sector is key to creating new employment as they expand the sources of Tax for Government expenditures. Improved and well-controlled money circulation to expand on business portfolio through Social Market Economy.

It is my belief that we will be in position to “RESTORE THE DOMAIN”

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bnhai said:

Inflation rate is just one aspect of interest rates. Political uncertainty, capital flight and tightened monetary policy have role to play because as a country, we lack strategic direction of our economy. Nothing is clear. The issue of alcohol sachets "viroba", public procurements send a contradictory message to the would be investors.

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shige2 said:

Mkuu tusaidie, Hiki Kiingereza ni lugha ya malkia wengine hatukijui hivi.
Hebu weka kwa Kiswahili ili kila mmoja achangie.

Nevertheless Politics and economy are intertwined.
Bad politics and unfavorable business environments, result into HIGHER IR and bad economy.

The best thing that could curb inflation and spur up economic growth is to have good political environment as well as CAPPING interest rates, encourage Banks in giving out loans to PRIVATE sector.

This will not only help the economy, but also RESTORE MONEY CIRCULATION in the economy. Consequently reversing the negative economic decline and other effects that go with it.

And at the same time government's domestic borrowing should be on a minimum.
As of whether CHADEMA or CCM .
They can speak for THEMSELVES!

Click to expand...

shige2 said:

Mkuu tusaidie, Hiki Kiingereza ni lugha ya malkia wengine hatukijui hivi.
Hebu weka kwa Kiswahili ili kila mmoja achangie.

Nevertheless Politics and economy are intertwined.
Bad politics and unfavorable business environments, result into HIGHER IR and bad economy.

The best thing that could curb inflation and spur up economic growth is to have good political environment as well as CAPPING interest rates, encourage Banks in giving out loans to PRIVATE sector.

This will not only help the economy, but also RESTORE MONEY CIRCULATION in the economy. Consequently reversing the negative economic decline and other effects that go with it.

And at the same time government's domestic borrowing should be on a minimum.
As of whether CHADEMA or CCM .
They can speak for THEMSELVES!

Click to expand...