Bloomberg News

Rwanda’s Central Bank Leaves Benchmark Lending Rate Unchanged

July 08, 2011

July 8 (Bloomberg) -- Rwanda’s central bank kept unchanged its key lending rate, after inflation in urban areas slowed for the first month in seven.

The Policy Interest Rate was maintained at 6 percent, National Bank of Rwanda Governor Claver Gatete told reporters in the capital, Kigali, today.

Rwanda’s inflation rate in urban centers fell to 4.54 percent in May from 4.98 the month before as food prices declined, the Kigali-based National Institute of Statistics of Rwanda said on June 15.

The National Bank of Rwanda left the benchmark interest rate unchanged at its last meeting on April 12, following three reductions the year before, to encourage banks to offer clients more affordable lending and spur economic growth.

Expansion in the coffee-producing nation is expected to slow to 7 percent this year from 7.5 percent in 2010 as dry weather crimps farming output, according to both government and International Monetary Fund estimates. The country is aiming to bring inflation below 7.5 percent by year-end, Gatete said on May 16.

--Editors: Philip Sanders, Karl Maier

To contact the reporter on this story: Heather Murdock in Kigali via Nairobi at pmrichardson@bloomberg.net; Sarah McGregor in Nairobi at smcgregor5@bloomberg.net.

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net.


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