KIGALI, Nov. 21 (Xinhua) -- Rwanda's central bank has decided to maintain its key interest rate at 6.5 percent for the next quarter to tame inflation, John Rwangombwa, governor of the National Bank of Rwanda, said Thursday.
Following a meeting of the Monetary Policy Committee (MPC) and Financial Stability Committee (FSC) in the capital, Kigali, Rwangombwa told reporters that inflation in the third quarter of 2024 remained within the target range of 2 to 8 percent due to improved agriculture, prior monetary measures, and easing prices for key global commodities.
He added that inflation is expected to remain within the target range, averaging about 4.6 percent this year and 5.8 percent in 2025.
"Based on the current forecasts, the MPC maintained the central bank rate at 6.5 percent, a level considered adequate to keep inflation within the target range," he said.
Headline inflation dropped to 4.1 percent in the third quarter of 2024 from 5.1 percent in the previous quarter, driven by eased pressures in core inflation.
However, Rwangombwa warned that heightened global geopolitical tensions due to conflicts in the Middle East, Ukraine and Russia could create uncertainties around international commodity prices.
Rwanda's economic performance remained strong over the first two quarters of 2024, achieving an average growth rate of 9.8 percent, according to the central bank.
The robust growth was broad-based, with both the industry and services sectors experiencing double-digit expansion, while agriculture rebounded from the climate shocks of the previous year.
