By Philbert Girinema
KIGALI (Reuters) -Rwanda’s central bank kept its policy rate unchanged at 6.5% in a decision announced on Thursday and said it planned to start buying gold for its international reserves.
Governor Soraya Hakuziyaremye told a press conference that the level of the Central Bank Rate was adequate to keep inflation within the bank’s 2%-8% target range while continuing to support economic growth.
“Our inflation is projected to stay around 6.5% for the rest of the year and is expected to decline to 3.9% in 2026. Nevertheless, risks to this outlook remain, and these include risking trade uncertainty and geopolitical tensions,” she said.
It was the third monetary policy meeting in a row the National Bank of Rwanda has maintained its key rate.
Annual inflation eased to 6.3% in April from 6.5% a month earlier.
Hakuziyaremye, Rwanda’s first female central bank governor appointed earlier this year, said the bank would start buying gold in the financial year that starts in July.
“We have had approval from our board as a central bank to consider gold as an investment asset,” she said.
“We will probably communicate the end of the next financial year, how much gold we have been able to acquire and whether its potential for high returns is what we have expected.”
With its gold purchases Rwanda will be following in the footsteps of neighbouring countries, such as Uganda and Tanzania, which have been buying gold to diversify and boost their reserve holdings.
(Reporting by Philbert Girinema;Writing by George Obulutsa and Elias Biryabarema;Editing by Alexander Winning and Tomasz Janowski)
Comments