By ABDUEL ELINAZA, 8th November 2011 Daily News THE Bank of Tanzania (BoT) said on Tuesday there are no plans to increase the number and sizes of Treasury Bills (TBs) as measure to curb excess liquidity in the economy. This follows money market analysts' predictions that the size and auctions days might be raised as part of the efforts to control further depreciation of the shilling and inflationary growth. They also predicted that additional bond auction days may be held as per new policy measure to check monetary growth in the economy. However, the Bank of Tanzania (BoT) Director of Economic Research and Policy, Dr Joseph Masawe, told the 'Daily News' that he could not guarantee the increase of bills and bonds nor auction days. ''The future direction is curbing monetary growth, but this is going to be done prudently to avoid negative effects on money markets,'' Dr Masawe said. The money market analysts pegged their prediction on the fact that inflation rate has reached a critical point and if not addressed it will push further the cost of living. The shilling of yesterday slowed down to 1,770/- for a US dollar after it depreciated by over 20 per cent since September 2010, while inflation stands at 16.8 per cent from 6.4 per cent of September, last year. ''After the significant uptick in inflation we have seen a sell-off in the bond market,'' Standard Chartered Bank commented on its Daily Market Commentary of Monday: ''There are also expectations that the Treasury bill auction size would be increased or additional bond auctions may be held to reduce excess liquidity as per new policy measures. ''Given the current scenario we see bond yields continuing to rise in every primary auction.'' The tight money policy background is to steer the economy into the direction desired by macroeconomic fundamentals led by the country's monetary authorities. In this case the policy is intended to slow inflation in the hope of avoiding distortions and deterioration of assets. The CRDB Managing Director, Dr Charles Kimei, said though the policy is important due to the importance of financing conditions to the economy, balancing it to avoid bad effects to lenders and borrowers was crucial. ''It influences credit prices, the availability of credit, and inflationary expectations and ultimately spur development,'' Dr Kimei said.