Rwandan and Seychelles Central Bank Keeps Key Interest Rate Unchanged

SEYCHELLES (Capital Markets in Africa) – Rwanda’s central bank kept its benchmark lending rate at a record-low 5.5 percent as it sees inflation and exchange-rate pressures remaining subdued.

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

While inflation could accelerate to about 4.5 percent by the end of this year, from 3 percent in May, price pressures are low, he said. The Rwandan franc weakened 1.5 percent against the dollar in the five months through May and is projected to depreciate a total of 4 percent in 2018, according to the central bank.

The central bank retains “tight” monetary policy stance as the forecast for a rise in inflationary pressures in short- to medium-term is unchanged, Central Bank of Seychelles says in a statement on its website.

• Inflation expected to accelerate on external, domestic factors
• Domestic demand is driven by rise in disposable income with the implementation of the final phase of Progressive Income Tax
• NOTE: Seychelles CB: 26 June 2018 CBS maintains a tightened Monetary Policy stance to contain forecasted inflationary pressures