The National Bank of Rwanda has announced that there is no need to replace current monetary policy by keeping the Key Repo Rate at 7.5%.
The decision was announced after both Monetary Policy Committee (MPC) and the Financial Stability Committee (FSC) held their ordinary quarterly meetings to assess the monetary policy implantation for the first quarter 2013 and to review the financial sector performance as of end December, 2012 and to decide way forward for Monetary policy.
The Governor of the National Bank of Rwanda John Rwangombwa has said all indicators have showed that a Rwanda Franc is stable.
Rwangombwa said the macroeconomic environment continues to be stable following a high economic growth of 8.0% recorded in 2012, low inflation of 4.8% in February 2013 and Stable Rwanda Franc.
“There are no much inflationary pressures in the short term due to expected good economic growth performance and low inflation in the main trade partners especially in the EAC member countries”
The Bank said the financial sector remains well performing, stable and continues to be resilient to adverse changes due to adequate capitalization of financial institutions.
Rwanda Banks have an overall capital adequacy ratio of 23.9% end December 2012, which exceed the regulatory minimum of requirements of 15%.
The ratio of Non-Performing loans to Gross loans in the Rwandan Banking Sector improved from 8.0% in December 2011 to 6.1% recorded in December,2012.
Total assets of the Banking Sector increased by 15.1%, whereas deposits grew by 15.2% from 2011 to 2012.
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