In a recent development, Rwanda's central bank announced its decision to maintain the key lending rate at 7.5%, signaling a strategic move to navigate the economic landscape. This decision comes as the country grapples with the aftermath of a spike in inflation, which peaked at 21.7% in November last year, only to recede to 11.2% in the past month. Despite this positive trend, the current inflation rate still hovers above the targeted 2%-8% range set by the nation.
Central bank governor John Rwangombwa addressed the media in a press conference, expressing confidence that the existing policy measures are robust enough to bring inflation back within the desired band."In 2024, we anticipate inflation to stabilize around 6%, and our intention is to sustain this rate into the following year, barring any unforeseen disruptions to the economic trajectory," Rwangombwa affirmed.
However, the governor acknowledged external factors that could pose challenges to this optimistic outlook. Geopolitical tensions and the unpredictability of weather-dependent agricultural production were cited as potential threats to the inflation landscape. He emphasized the need for vigilance, especially in the face of global commodity price fluctuations. Amid these uncertainties, the central bank remains cautiously optimistic about Rwanda's economic growth.
While estimating a slight slowdown in the third quarter, projections indicate that the nation is still on course for an overall growth rate of approximately 6.2% in 2023. The central bank's commitment to stability and growth reflects a calculated approach to steering the country's economic ship through potentially turbulent waters.As Rwanda continues to navigate the intricacies of its economic landscape, the central bank's decisions and projections serve as a compass, guiding the nation toward sustainable growth and stability.