Friday, September 27, 2013

Rwanda holds rate, outlook stable, inflation moderate

    Rwanda's central bank held its key repo rate steady at 7.0 percent to "maintain the current monetary policy stance to foster macroeconomic stability and to continue to stimulate financing of the economy in the coming fourth quarter of 2013."
    The National Bank of Rwanda (BNR), which cut its repo rate by 50 basis points in June, said the outlook for the economy remains stable, with moderate inflation and the financial sector is resilient with adequate capitalization as of June, liquid and profitable with satisfactory asset quality.
    Rwanda's Gross Domestic Product expanded by an annual 5.7 percent in the second quarter, down from 6.0 percent in the first quarter, and the inflation rate rose slightly to 4.04 percent in August from 3.59 percent in July due to higher prices for food, non-alcoholic beverages and eduction.
    Rwanda's currency, the Rwandan franc, has depreciated by 3.9 percent this year as of today,"but the situation is expected to stabilize by the end of 2013 on account of an increase in foreign exchange flows as well as regained confidence in the foreign exchange market," the BNR said.