Rwanda central bank maintains key rate, sees inflation within target

KIGALI (Reuters) -Rwanda’s central bank held its key interest rate at 6.5% on Thursday after cutting it at the last two rate decisions this year.

Governor John Rwangombwa told reporters that the decision was based on uncertainties in the performance of the agriculture sector and that the central bank felt its policy stance could keep inflation within its 3%-8% target range.

“We think for now (the rate) is good enough to maintain inflation within our band,” he told a news conference.

Annual inflation has remained under 6% this year and stood at 3.8% in October.

The decision follows a 50-basis-point cut to the National Bank of Rwanda’s Central Bank Rate in August, and a similar-sized cut in May.