Central Bank keeps repo rate at 6.5% to boost borrowing
The national bank of Rwanda (BNR) has announced its key repo rate will hold steady at 6.5 percent to maintain strong economic growth and robust lending.
In June, the central bank cut the rate by 50 basis points from 7.0 as it seeks to enable the country’s economy to continue on the 8 percent average GDP growth over the past ten years.
“There is no need of further reducing it because the level is sufficient enough to give results we wanted. We don’t have any pressures on the inflation,” central bank Governor John BNR Governor John Rwangombwa said on Wednesday, a day after the figure was released.
He would not comment on how long it would stay on hold.
He said new private sector borrowing from the commercial banks has gone up 45 percent in the last eight months.
In its annual budget, Rwanda projects that gross domestic product will grow by 6 percent this year, helped by expansion in the agriculture, services and industrial sectors.