Rwanda Lowers Key Repo Rate to 6.25%
Rwanda’s Monetary Policy Committee has reduced the key repo rate to 6.25 percent from 6.5 percent, after leaving it unchanged since June 2014.
This is the lowest bank rate within the East African Countries.
Recently the Bank of Uganda (BoU) also reduced the Central Bank Rate (CBR) to 12 percent in December 2016 from 13 percent in October 2016, according to a Monetary Policy Statement issued to the press by Professor Emmanuel Tumusiime-Mutebile, Governor Bank of Uganda. while the Kenya Monetary Policy Committee (MPC) retained the Central Bank Rate (CBR) at 10.0 percent at its meeting held on November 28, 2016
“The lowering of the key repo rate is to signal the banks to increase lending to the private sector and support growth,” Governor John Rwangombwa told reporters Wednesday in the capital, Kigali.
The central bank forecasts the inflation rate at about 6 percent by the end of 2016 after it slowed to 6.4 percent in November from 7.4 percent in the previous month. Economic growth may also decelerate to 6 percent this year, from 6.9 percent in 2015, Rwangombwa said.
The franc has weakened about 9 percent against the dollar this year as Rwanda’s earnings from mineral exports shrank.