THE domestic credit by the banking system recorded an annual growth of 20.0 per cent in November compared to 15.4 per cent in the preceding month this year.
According to the Bank of Tanzania (BoT) monthly economic review for December, the credit extended to the central government through purchases of government securities grew by 49.6 per cent in the year ending November compared to the annual growth of 39.1 per cent in October this year.
The bank credit extended to the private sector increased by 1.0tri/- equivalent to the annual growth of 5.2 per cent, compared to 4.9 per cent in October this year.
The credit to the private sector was more prominent in personal activities largely micro, small and medium enterprises, transport and communications and hotels and restaurants.
The breakdown of the private sector credit to various economic activities shows that, personal activities held the largest share of the total outstanding credit of 33.6 per cent followed by trade and manufacturing activities, accounting for 15.7 per cent and 9.9 per cent, respectively.
In November 2020, the monetary policy stance remained accommodative, driven largely by a need to improve credit flows to the private sector to support higher growth in the economy.
Consequently, extended broad money supply increased by 1.45tri/- the year ending November.
The increase in money supply translated into the annual growth rate of 5.2 per cent, compared to 5.9 per cent registered in the year ending October this year.
The broad money supply grew by 8.7 per cent compared to 10.7 per cent in the year ending October 2020.