BNR Governor presents monetary policy statement in Musanze

THE Governor of the National Bank of Rwanda (BNR), Amb. Claver Gatete, has revealed that Rwanda’s economy remains growing, despite the volatile world economy, resulting from high prices of food and fuel as well as the drought in the region.
Governor, Claver Gatete.The NewTmes /File
Governor, Claver Gatete.The NewTmes /File

THE Governor of the National Bank of Rwanda (BNR), Amb. Claver Gatete, has revealed that Rwanda’s economy remains growing, despite the volatile world economy, resulting from high prices of food and fuel as well as the drought in the region.

While presenting the monetary policy and financial statement at INES-Ruhengeri, for the first half of the year, the Governor said that exports have grown by 48 per cent, while the economy is projected to grow
above 7 per cent.

‘Using our own index, the industry services have been growing significantly, exports have grown, and the banks have been lending money heavily to the private sector,  we have managed to contain the inflation up to 5.8 per cent’’ Gatete said.

In the period between January and June, the agriculture sector expanded by 11.3 per cent due to overall favorable weather conditions and crop intensification program, according to the central bank.

The export crop; tea, coffee and minerals representing 72 per cent of the total export values increased, with tea exports increasing by 4.1 per cent, while the mining sector increased by 54 per cent in volume.

Rwanda has the lowest inflation rate compared its EAC counterparts.

However according to the statistics, in June 2011, on an annual basis, inflation hit 15.8 per cent  in Uganda, 14.5 per cent in Kenya, 10.9 per cent in Tanzania and 8.6 per cent in Burundi.

“The National Bank implemented a proactive monetary policy to stimulate banks lending capacity, to the private sector, while keeping moderate inflationary pressures. 

A stable exchange rate, and improved food production contributed to a lower level of inflation’’ said Gatete.

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