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Rwanda's central bank maintains repo rate at 5.5%

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Rwanda's central bank maintains repo rate at 5.5%

The National Bank of Rwanda maintained its key repo rate for the second quarter of 2018 at 5.5%, according to a March 28 statement.

The bank's monetary policy committee observed that the country's financial sector remains adequately capitalized, liquid and profitable, and the stable repo rate supports positive macroeconomic conditions.

Rwanda's economy turned in a growth rate of 6.1% for full year 2017, up from 6.0% in the prior year, and above the initial 2017 forecast of 5.2%. This strength was largely due to the services and agriculture sectors, with each growing by 8% and 7%, respectively.

The external sector performed well in the first quarter of 2018 as the value of exports increased by 31% in the first two months while the value of formal imports went up 13.2%.

In addition, headline inflation fell to 0.7% in February, compared to 8.1% recorded in the same period last year.