Rwanda: Central Bank maintains rate at 5.5% and raises growth forecast

It is on a rate of 5.5% that financial institutions in Rwanda will continue to lend in the third quarter of 2018, according to a note from the Rwandan Central Bank released Tuesday, June 26.
A rate maintained due to positive macroeconomic conditions, including low inflation and exchange rate pressures, observed in the second quarter of the year and expected to prevail the rest of the year, according to Central Bank Governor John Rwangombwa .
According to the results published, headline inflation stood at 3% in May compared with 0.9% in the first quarter of 2018 due to higher food and energy prices as well as transportation costs.
In addition, the institution raised its growth forecast to 7.2% this year, in line with the projections of the International Monetary Fund, based on its forecast of 6.5% in March.
“The pressure on exchange rates remained low, compared to 2017, the Rwandan franc depreciated by 1.5% against the US dollar at the end of May 2018, against respectively 1% and 4% over the same period in 2017 and 2016 “, the Central Bank announced at the same time.
Note that last week, the Rwandan Ministry of Finance announced that the country’s economy grew by 10.6% in the first quarter of 2018, with GDP at current market prices estimated at RWF 1 985 billion (2 US $ 3 billion), compared with Fr. 1,816 billion (US $ 2.1 billion) the previous year.