Friday, July 8, 2011

National Bank of Rwanda Holds Interest Rate at 6.00%

The National Bank of Rwanda governor Claver Gatete announced that the Bank had maintained its key lending rate unchanged at 6.00% at its July meeting.  Previously the Bank has noted that it expects inflation to be in the range of 8% by the end of December if current trends continue.  Rwanda has seen inflation pick up to 4.54% in May, compared to 4.98% in April, and 4.11% in March, and 1.09% in January this year.  

At its April meeting the Bank also held the key monetary policy interest rate unchanged at 6.00%.  According to IMF data Rwanda saw annual GDP growth of 5.39% during 2010, meanwhile the IMF recently scaled down its growth estimate for Rwanda to 7% for 2011, from a previous forecast of 7.5%.  The IMF also noted that it is forecasting inflation of 7.5% for 2011 and cautioned the East African nation to tighten monetary policy in order to avoid second-round inflation effects of higher food and energy prices.


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