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Rwanda reserve bank chief states policy expected to stay accommodative

Rwanda's financial policy can remain accommodative as inflation is expected to stay under 5% through 2025, National Bank of Rwanda guv John Rwangombwa stated on Thursday.

Speaking to Reuters on the sidelines of a fintech occasion in Singapore, Rwangombwa also said growth in the East African nation was expected to come in above 8% this year.

Our monetary policy position is anticipated to remain accommodative, he stated when inquired about the central bank's. alleviating cycle.

The reserve bank has cut its policy rate by 50 basis points. at each of its previous two conferences, taking the rate to 6.5%.

So now the question is, is 6.5% where we are today. accommodative enough? Do we require to reduce further? These are. choices taken by the monetary policy committee, he stated.

Rwangombwa said two major dangers for the economy were climate. modification, because of its impact on the agricultural sector, and. geopolitics, specifically the conflicts in Ukraine and the. Middle East.

He said Rwanda expected to renew its programs with the. International Monetary Fund when they end in mid-2025, saying. they were more about policy guidance than funding.

It's about policy support mainly. We engage with the fund. on economic policies we are carrying out, so they act as our. advisors..

(source: Reuters)