Home Business & TechEconomy Central Bank Reduces Lending Rate To 7%

Central Bank Reduces Lending Rate To 7%

by Daniel Sabiiti
12:15 pm

The National Bank of Rwanda

National Bank of Rwanda (BNR) has lowered the central bank rate (CBR) to 7% based on the current inflation forecasts that is expected to be manageable, around 5 percent over the policy horizon.

The previous CBR, determined by the quarterly Monetary Policy Committee (MPC), and Financial Stability Committee (FSC) in February, was set at 7.5%, as a result of high inflation across the board.

“The Monetary Policy Committee has decided to reduce the central bank rate (CBR) by 50 basis points from 7.5 percent to 7.0 percent,” the Central Bank Governor, John Rwangombwa said during a press briefing this May 29, 2024.

In 2024Q1, headline inflation (y-o-y) dropped to 4.7% from 8.9% recorded in 2023Q4, driven by declines recorded in core and fresh food inflation that offset a slight increase in energy inflation, BNR said.

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