Rwanda: Bank lending rate lowered

Rwanda’s central bank had lowered its benchmark lending rate for the first time in a year to support an economic recovery, governor John Rwangombwa said yesterday. The policy rate was cut to 6.5 percent from 7 percent, the first since June last year, Rwangombwa said. Price pressures remained contained with urban inflation, which slowed to 1.9 percent last month, forecast to remain below 3 percent in the second quarter, he said. Economic growth had accelerated to 7.4 percent in the first quarter from 4.7 percent a year earlier, helped by a 5 percent expansion in agriculture. “The economy is recovering from a slowdown last year, key indicators show the economy will continue recovering in the second quarter.” – Bloomberg