Rwanda maintains rate as inflation seen decelerating

    Rwanda's central bank left its benchmark interest rate steady at 4.50 percent, saying it was maintaining an accommodative monetary policy stance to support commercial banks to continue financing businesses and households considering that inflation is projected to decelerate in the last quarter of this year.

    The National Bank of Rwanda (NBR) has only cut its rate twice since December 2017, first in May 2019 and then in April this year, both times by 50 basis points.

     In a statement following a quarterly meeting by its monetary policy committee on Aug. 12, the bank noted economic growth in the first quarter eased to 3.6 percent compared with 6.1 percent in the first quarter of 2019 and 8.4 percent in the fourth quarter of 2019, and high-frequency indicators point to a negative impact of COVID-19 pandemic in the second quarter.

     NBR's composite index of economic activities (CIEA) fell 8.8 percent in the second quarter compared with a rise of 16.5 percent in the same quarter last year but then rose 8.4 percent in June as the economy opens up and economic activities begin to pick up.

     The economy is expected to improve in the second half of this year, supported by a further opening of Rwanda's and other economies across the world, the central bank said.

     Rwanda's inflation rate averaged 8.7 percent in the second quarter, up from 8.2 percent in the first quarter, due to higher public transport prices.

     But NBR said headline inflation is projected to start slowing to below its target of 5.0 percent in the last quarter of 2020 but still raised its forecast for average inflation this year to 6.9 percent from 6.0 percent projected in April due to the rise in transport prices. 

     The exchange rate of Rwanda's franc has depreciated by 2.3 percent against the U.S. dollar by the end of July, slightly down from a 2.6 percent decline in the same period last year and NBR expects the exchange rate to remain stable, with adequate reserves covering 6.3 months of imports.

     In June the International Monetary Fund's executive board approved the disbursement of another $111.06 million under its rapid credit facility to Rwanda, the IMF's second emergency disbursement following $109.4 million in April.

     In its statement, the IMF said Rwanda's economic outlook had worsened since April and lowered its growth forecast for 2020 to 2.0 percent from an earlier 5.1 percent "due to the deepening of the COVID-19 impact."

 

     www.CentralBankNews.info

2016 Central Bank Calendar

        Following is the 2016 calendar for meetings by central bank committees that decide monetary policy.
    The table includes scheduled meetings for more than 35 of the world's central banks. In the event that meetings by monetary policy committees take place over several days, the date listed below is for the final day of the meetings when decisions are normally announced.
   The calendar is updated regularly to reflect the latest information as some central banks have yet to release their meeting schedule for 2016. Other central banks only release tentative schedules and then finalize their calendar as the meeting nears.

    The latest version of the calendar can always be accessed by clicking here.

    Work is underway to expand the number of central banks covered, including expanding the existing inflation targets table, and global interest rates table. You may replicate the table in part or in full only if you link to this page.

                                    2016 Global Central Bank Calendar

JANUARY
7-Jan	RON	Romania	National Bank of Romania
12-Jan	RSD	Serbia	National Bank of Serbia
14-Jan	KRW	South Korea	Bank of Korea
14-Jan	GBP	United Kingdom	Bank of England
14-Jan	PLN	Poland	National Bank of Poland
14-Jan	PEN	Peru	Central Reserve Bank of Peru
14-Jan	CLP	Chile	Central Bank of Chile
15-Jan	MZN	Mozambique	Bank of Mozambique
19-Jan	TRY	Turkey	Central Bank of Republic of Turkey
20-Jan	CAD	Canada	Bank of Canada
20-Jan	BRL	Brazil	Central Bank of Brazil
21-Jan	MYR	Malaysia	Central Bank of Malaysia
21-Jan	EUR	Euro area	European Central Bank
25-Jan	GHS	Ghana	Bank of Ghana
25-Jan	ILS	Israel	Bank of Israel
25-Jan	AOA	Angola	Bank of Angola
26-Jan	HUF	Hungary	Central Bank of Hungary
27-Jan	USD	United States	Federal Reserve
28-Jan	NZD	New Zealand	Reserve Bank of New Zealand
28-Jan	ZAR	South Africa	South African Reserve Bank
28-Jan	UAH	Ukraine	National Bank of Ukraine
28-Jan	MDL	Moldova	National Bank of Moldova
29-Jan	JPY	Japan	Bank of Japan
29-Jan	RUB	Russia	Bank of Russia
29-Jan	COP	Colombia	Central Bank of Colombia
29-Jan	TTD	Trinidad and Tobago	Central Bank of Trinidad and Tobago