Rwanda Interest Rate2005-2020 Data | 2021-2022 Forecast | Calendar | Historical

The National Bank of Rwanda held its key repo rate steady at 5 percent during its February 2020 meeting, with the main purpose of continuing to support domestic demand amid low inflation. Urban inflation rate, the one at which the central bank looks in its policy decisions, dropped to 6.7 percent, after hitting an over 2-year high of 6.9 percent in November, and it is projected to remain within the benchmark band throughout 2020, despite going slightly above the 5 percent target. Policymakers also said that short-term indicators point to a sustained economic growth in the fourth quarter of 2019 and in 2020 at an average of 8.1 percent, boosted by manufacturing and tourism.

The National Bank of Rwanda left its key repo rate steady at 5% during its November 2019 meeting, to continue supporting the financing of the economy and growing domestic demand. Policymakers noted that inflation remained low; but is expected to pick up to 2.3% in 2019 from 1.4% in 2018, before reaching 5% in 2020, though remaining within the target band of 2-8%. The economy grew 12.2% in Q2 2019, the most since Q1 2009, from 8.4% in the previous period, and is projected to expand 8.5% in 2019 and 8.1% in 2020. The Committee also disclosed that bank lending picked up in the first three quarters of 2019 amid increased demand for credit. The exchange rate depreciation was sharper in the first ten months of the year over a year ago, and it is estimated at 4.8% by the end of 2019, slightly below an initial projection of 5.1%.

The National Bank of Rwanda kept its benchmark interest rate steady at 5.0 percent on August 14th 2019, to support domestic demand. Policymakers said that short-term indicators point to a sustained economic growth in the second quarter of the year, consistent with the projection of 7.8 percent growth in 2019. Meantime, inflation rose to an over one-year high of 1.6 percent in July, mainly due to lower food supply caused by drought conditions, and it is expected to average 2.0 percent in 2019.

The National Bank of Rwanda lowered its benchmark interest rate by 50 bps to a record low of 5% at its May 6th 2019 meeting, to sustain growing domestic demand. Regarding inflation, policymakers noted that it has been low since 2018 and continues to remain low at 1% in 2019Q1. Projections put inflation rising to around 3% in 2019 from 1.4% in 2018 but still below the bank target range of 2-8% and even its preferred target of 5%. The real GDP grew 8.6% in 2018, driven by agriculture (6%), services (9%) and industry (10%); The good economic performance is expected to continue in 2019, as economy should expand 7.8%. The bank added that exchange depreciation was moderate in 2019Q1, consistent with an initial projection of 5% for the whole year 2019, higher than 4.0% recorded in 2018. Also, the level of foreign exchange reserves remain adequate.