Rwandan central bank lowers key repo rate to stimulate lending

PUBLISHED: Wed, 28 Dec 2016 14:06:18 GMT

Rwanda’s central bank on Wednesday lowered its key repo rate to 6.25 percent, from 6.50 percent, to help stimulate credit growth, Governor John Rwangombwa said.

Rwangombwa said while moderate pressure was expected on inflation and the local currency, authorities needed “to give a signal … to the financial sector to continue supporting the financing of the economy.”

Last month, Rwanda’s year-on-year overall inflation declined to 6.4 percent from October’s 7.4 percent and the governor said the rate would likely stand at 6 percent in December.

Rwangombwa said credit to the private sector grew 7.4 percent in the first 11 months of this year, compared with 26.9 percent in the same period in 2015.

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