In Tanzania, loans takers and debtors, will now take some measure of relief as the Central Bank announces huge drop in interest rate.

The prime interest rate is reduced from 12% to 9%.

The bank, in a statement, said its action was to stimulate economic bases and enable productive borrowers to survive.

The Deputy Governor, Bank of Tanzania, Julian Raphael, said the new interest rate would be applied to the Treasury Bills market.

It is the second time this year that the apex bank has cut interest rate. In March, the rate was dropped from 16% to 12%.

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