In 2016, Rwanda maintained the KRR at 6.5 per cent to ensure that the banking sector continues to finance economic activities limiting inflationary pressures from the monetary pressure from the monetary sector. With the move, the total authorized loans to the private sector increased by 6.3 per cent in 2016 with broad money increasing by 7.5 per cent. In retrospect however, this is a drop from the 2015 private sector loan approvals that stood at 13.67 per cent. So how can Rwanda’s monetary policy utilized to spur more private sector credit in 2018? For a broader outlook on the monetary policy stance ahead, CNBC Africa spoke to Governor John Rwangombwa.
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