Rwanda’s annual inflation will not rise to double-digit levels by the end of the year due to continuing good performance in food production, the National Bank of Rwanda (BNR) has said.
Inflation fell to 3 percent in July this year from 23 percent in December 2008 while the Rwandan franc has been generally stable, slightly depreciating by 3 percent the US Dollar in the first half of 2010.
“We will watch the situation, we don’t expect pressure; so we do expect low single digit inflation figure to be maintained for the rest of the year,” Francois Kanimba, the Governor of BNR said recently during the presentation of the Monetary Statement.
The overall inflation rate is maintained at low levels compared to the last two years.
According to BNR forecasts for the 3rd Quarter of 2010, annual headline inflation is expected to reach 6 percent in September.
The Central Bank said that it began easing its monetary policy stance in 2010 in order to stimulate economic activity considering the improving outlook for inflation.
The improving macroeconomic structure is in turn expected to boost economic growth between 7 and 10 percent in 2010.