Rwanda keeps repo rate at 7.0 pct with inflation low

Reuters

KIGALI (Reuters) - Rwanda's central bank kept its key repo rate at 7.0 percent on Friday, saying inflation remained low and the economy was performing well despite some global pressures.

Urban inflation was 4.04 percent in the year to August. Inflation has fallen from 5.67 percent in January and has hovered around 3 to 4 percent for much of the year.

John Rwangombwa, the central bank governor, noted inflation had been below 5 percent for the past eight months. "We still think that's moderate inflation and it doesn't cause any big worries on our side," he said.

"When we took the decision to lower the (repo rate) in June that immediately had an impact on the money markets," he said, referring to the June decision to cut the rate by 50 basis points from 7.50 percent.

"These are signs that the decision we took in June to allow more lending to the private sector is already taking shape," the governor said, adding that the bank was happy with the health of the financial sector and the way it was growing.

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