It has been announced this Monday by the Governor of BNR, John Rwangombwa during the presentation of monetary policy.<\/p>\n
Rwangombwa explained that the reduction is meant to support banks\u2019 lending to the private sector to increase development activities.<\/p>\n
He, however, noted that it doesn\u2019t mean that changes in interest rates will be affected immediately because banks have other requirements in the process of delivering loans. <\/p>\n
\u201cWe want to keep supporting banks to increase lending to private investors to scale up national economy and the pace of market prices that were very low,\u201d he said. <\/p>\n
Rwangombwa said the wish is to accelerate the pace for market price from 1% of March 2019 to 3% at the end of this year. <\/p>\n
BNR announced that lending from banks increased by 24.9 %. Loans to private investors increased by 16.2 % compared to 7.3 % of a similar quarter in 2018.<\/p>\n
Rwangombwa said there is evidence of national economic growth by12.2% in the first three months of 2019. <\/p>\n
He said that reducing the lending rate will enable banks to match established standards and ease private investors\u2019 access to credits to boost economic growth.<\/p>\n
\u201cIt however takes time. We don\u2019t assume that they are reducing the interest rate tomorrow because we did it today. It takes a process because they get money from clients,\u201d he added. <\/p>\n
It has been over a year since BNR reduced the base lending rate from 6% to 5.5%.<\/p>\n","protected":false},"excerpt":{"rendered":"
The National Bank of Rwanda (BNR) has reduced the base lending rate to commercial banks from 5.5% to 5% to encourage more lending to the private sector and shore up economic growth.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[75],"byline":[170],"hashtag":[],"class_list":["post-39280","post","type-post","status-publish","format-standard","hentry","category-news","tag-homenews","byline-igihe"],"bylines":[{"id":170,"name":"IGIHE","slug":"igihe","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":8}],"contributors":[{"id":170,"name":"IGIHE","slug":"igihe","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":8}],"featured_image":null,"_links":{"self":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/39280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/comments?post=39280"}],"version-history":[{"count":0,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/39280\/revisions"}],"wp:attachment":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media?parent=39280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/categories?post=39280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/tags?post=39280"},{"taxonomy":"byline","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/byline?post=39280"},{"taxonomy":"hashtag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/hashtag?post=39280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}