By www.CentralBankNews.info Rwanda’s central bank expects headline inflation to continue to ease in the second half of this year and not exceed 7.5 percent by December.
The National Bank of Rwanda (BNR) also said in its Monetary Policy and Financial Stability Statement that economic activity in the second quarter and prospects for the second half of this year indicate that the economy will continue to grow as planned.
In the first quarter, Rwanda’s economy expanded by an annual 5.9 percent, in line with the 7.5 percent growth that is projected for the full year, but down from 8.8 percent in the fourth quarter.
“Going forward, BNR will continue to closely monitor development in underlying factors of inflation so as to take appropriate measures to limit inflationary pressures, using the monetary policy instruments,” the central bank said.
Rwanda’s inflation rate rose to 3.7 percent in June from 2.98 percent in May and compared with 5.9 percent in June 2012.
In June the BNR cut its repo rate by 50 basis points to 7.0 percent, the first change since May 2012 when it raised its rate.