Rwanda Keeps Key Interest Rate Unchanged as Inflation Is Subdued

KIGALI (Capital Markets in Africa) – Rwanda’s central bank kept its benchmark lending rate at a record-low 5.5 percent for a third straight meeting as consumer-price growth remains subdued.

They key rate was held at 5.5 percent, Governor John Rwangombwa told reporters in the capital, Kigali, on Tuesday.

Inflation, which was at 2.1 percent in August, won’t exceed the central bank’s target of 5 percent by the end of the year, Rwangombwa said. That’s partly thanks to a stable franc, he said. The currency depreciated 2.5 percent against the dollar by the end of August and won’t weaken more than 4 percent in total by the end of 2018, according to the central bank.

The East African economy is on track to expand at 7.2 percent this year, Rwangombwa said.

Source: Bloomberg Business News