Rwanda's domestic economy remains stable: central bank
Rwanda's domestic economy remains resilient and stable, the country's central bank said on Thursday.
In its quarterly Monetary Policy Committee (MPC) statement for the fiscal year 2023/2024, the National Bank of Rwanda (NBR) mentioned that despite challenging weather conditions and a weak global economic outlook, Rwanda's economy is expected to remain resilient.
"Real GDP (gross domestic product) growth is expected to remain high in the last quarter of 2023, continuing the trend of the first three quarters, during which real GDP growth averaged 7.6 percent," John Rwangombwa, governor of the NBR, said during a press briefing following the bank's MPC meeting in the national capital of Kigali.
He attributed the resilience of the economy to a recovery in tourism and construction, as well as improvements in manufacturing and trade services.
Rwangombwa noted that inflation is projected to remain from 2 to 8 percent through 2024, averaging close to 5 percent. However, he highlighted several potential risks that could affect the outlook, including geopolitical tensions and weather-related challenges affecting agriculture.
In line with the inflation projection and the identified risks, and with the aim of achieving lasting inflation stability in the upcoming quarters, the MPC decided to maintain the Central Bank Rate (CBR) at 7.5 percent, according to him.
He said maintaining the policy rate is consistent with a "prudent" approach to protect the positive trend in inflation observed over the last few months and to avoid rushing to reduce the rate while potential risks remain.
