By Philbert Girinema
KIGALI (Reuters) -Rwanda’s central financial institution held its key rate of interest at 6.5% on Thursday after slicing it on the earlier two rate-setting conferences this 12 months.
Governor John Rwangombwa advised reporters that the choice was primarily based on uncertainty over the efficiency of the agriculture sector and that the central financial institution felt inflation might be stored inside its 3%-8% goal vary.
“We expect for now (the speed) is nice sufficient to take care of inflation inside our band,” he advised a information convention.
Annual inflation has remained below 6% this 12 months and stood at 3.8% in October.
Rwangombwa stated the East African nation’s economic system had remained robust within the third quarter because of the companies and trade sectors and that inflation would common round 4.6% in 2024.
The financial institution has raised its common inflation forecast for subsequent 12 months to five.8%, from 5%, due to the impression of adversarial climate situations on farming.
“We count on to see some pressures on meals costs, and due to this fact that has led us to extend (our) projection of inflation for 2025,” he stated.
Thursday’s choice follows a 50-basis-point lower to the Nationwide Financial institution of Rwanda’s Central Financial institution Charge in August, and a similar-sized lower in Could.
