[ad_1]
BNR Governor John Rwangomba said in an interview with the media on Wednesday that this is due to the good market prices, which will not increase by more than 5% this year.
Rwanda Governor Rwamba said that the Central Bank of Rwanda appreciates that the market inflation rate has returned to a low level, as the inflation rate has reached 5.1% from 4.7% in the first quarter of 2024, and there is hope that this inflation rate will not exceed 5% this year and next year in 2025.
Governor Rwamba said this was one of the reasons why the BNR lowered its base interest rate from 7% to 6.5% to adapt to the economic situation.
“As you know, we made this request two years ago because we were facing problems with over-stressed market prices. So now that interest rates have been lowered and they are at the level we want, we find it necessary to continue to lower the interest rate of the country’s central bank,” he said.
Overall, the BNR indicates that Rwanda’s financial sector is stable in terms of the capital held by financial institutions, the way they earn profits, and the quality of loans provided by financial institutions.
“We see that this level is stable across all parameters, which shows that we are not worried about any instability at the level of finance or even financial institutions in our country,” he said.
BNR shows that at the international level, the market price growth rate will exceed 8% in 2022, falling to 6.7% in 2023, while it is expected to fall to 5.9% this year and reach 4.4% next year.
Governor Rwamba said the decline showed that the problem of rising prices in the Rwandan market was caused by reduced imports, which in turn led to a drop in prices in the Rwandan market.
[ad_2]
Source link
