The development was announced on Thursday 11th May 2023 during the presentation of the quarterly financial stability statement.
The decision was reached during the Monetary Policy Committee (MPC) Meeting held on 10th May to decide on the central bank rate for the next three months.
According to BNR, inflationary pressures are on declining trend, although it is still high.
As per statement presented today, inflation is expected to continue decelerating until it converges towards the target band (below 8 percent) before end of this year, owing to the effect of BNR monetary policy tightening, government policy measures, and the already decreasing international commodity prices.
Based on the projected ease in inflation, the MPC decided to maintain the Central Bank Rate at 7.0%.
The repo rate had been increased from 6.5% to 7% in February this year to tame surging inflation and continue supporting the country’s economic recovery.
The global economy is expected to grow by 2.8% against 3.4 % growth registered last year.
The Central Bank Governor, John Rwangombwa attributed the slowdown to the war between Russia and Ukraine as well as COVID-19.
Among others, he disclosed that Rwanda’s economy is projected to grow by 6.2% and expressed optimism that the country will achieve the target in consideration of the previous quarter’s situation.
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