News Column

Rwanda : BNR cuts lending rate to commercial banks

June 27, 2014

In a move to boost lending to the private industry and shore up economic development, the central bank of Rwanda has slashed its lending rate to commercial banks from 7 per cent to 6.5 per cent.

The decision is viewed as an alert to commercial banks to consider cutting interest rates on commercial loans and enable more access to loans by the fast-growing private industry.

Economists say this would mean enhanced investment in productive industries, hence fast-tracking the country's economic development.

The cut in the repo rate comes soon after new figures published by the National Institute of Statistics of Rwanda indicate that the economy is returning to a faster development trajectory, recording a 7.4 per cent growth rate in Q1-2014.

The governor of the National Bank of Rwanda (BNR), John Rwangombwa, said this made it necessary to further ease the monetary policy stance for allowing more money into the private industry and sustain financial recovery.

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Source: TendersInfo (India)

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