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Rwandan central bank maintains its key repo rate at 5.5%
The monetary policy committee of the Central Bank of Rwanda has decided to keep the key repo rate at 5.5 per cent while maintaining the country’s policy stance. Joining CNBC Africa for more is Prof. Kasai Ndahiriwe, Director of Monetary Policy of the National Bank of Rwanda to shed some more light on this decision.
Tue, 25 Sep 2018 14:22:57 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The decision to keep the key repo rate at 5.5% indicates the appropriateness of the current economic stance, bolstered by signs of robust economic growth, low inflation, and stable exchange rates.
- Projections based on meticulous analysis of various economic sectors forecast promising economic growth of 7.2% and inflation below the 5% target, supported by collaboration among key stakeholders.
- Investors looking at Rwanda as an investment destination should consider the historical performance of key sectors such as industry, services, and construction, which have been driving economic growth in the country.
The monetary policy committee of the Central Bank of Rwanda has decided to keep the key repo rate at 5.5 per cent. This decision was made while maintaining the country's policy stance unchanged. Prof. Kasai Ndahiriwe, Director of Monetary Policy of the National Bank of Rwanda, shed light on the rationale behind this decision. According to Ndahiriwe, the decision to maintain the key repo rate signals that the current economic stance is appropriate. The Rwandan economy has been showing signs of robust growth, with low inflation and minimal exchange rate pressures. These factors played a crucial role in the committee's decision to keep the policy stance unchanged.
The process leading to such decisions involves a meticulous analysis of various economic sectors, including the real, fiscal, and monetary sectors, as well as external factors. Projections based on this analysis play a significant role in determining the appropriate policy stance that will influence future economic activities and inflation levels. The collaboration between the Ministry of Finance, the National Bank of Rwanda, and other stakeholders helps in setting a macroeconomic framework for the country.
The projections for the Rwandan economy look promising, with an expected economic growth rate of 7.2% and inflation projected to remain below the 5% target. The performance of key sectors such as industry and services has been contributing to the positive outlook for the economy. Historically, the Southeast sector has been a driving force behind Rwanda's economic growth, with the industry sector showing a 10% growth rate in 2018.
Investors eyeing Rwanda as a potential investment destination are advised to consider the historical performance of the country's key sectors. Manufacturing, industry, and construction sectors have been particularly robust and offer promising opportunities for investment. Overall, Rwanda's economic outlook remains strong, supported by favorable projections and a conducive policy environment set by the Central Bank.
In conclusion, the decision to maintain the key repo rate at 5.5% reflects the confidence of the Central Bank of Rwanda in the current economic trajectory. With a focus on sustainable growth and stable inflation, Rwanda is poised to attract investors and continue its upward economic momentum.
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