{"id":29565,"date":"2022-11-16T08:51:05","date_gmt":"2022-11-16T08:51:05","guid":{"rendered":"https:\/\/www.africa-press.net\/rwanda\/all-news\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation"},"modified":"2022-11-16T09:05:25","modified_gmt":"2022-11-16T09:05:25","slug":"central-bank-increases-lending-rate-to-6-5-to-tame-inflation","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation","title":{"rendered":"Central bank increases lending rate to 6.5% to tame inflation"},"content":{"rendered":"

Africa-Press – Rwanda. <\/strong><\/span>The National Bank of Rwanda (BNR) has increased the lending rate from 6 percent to 6.5 percent as the country continues to tame inflation.<\/p>\n

Also known as the key repo rate, this is the fee at which the Central Bank lends to commercial banks. Adjusting it upwards or downwards allows the regulation of liquidity in the banking system with an aim to stabilise the economy.<\/p>\n

During the quarterly Monetary Policy Committee and Financial Stability Statement released on November 15, Governor John Rwangombwa said raising the rate will reduce inflationary pressures and preserve consumers’ purchasing power.<\/p>\n

Basically, this means that with less money in circulation, consumers will focus more on priority spending and discourage suppliers from increasing prices because there is less demand.<\/p>\n

\u201cIncreasing the policy rate cannot solely address the increase of prices but it\u2019s one of the measures needed to be taken along with other government subsidies in different sectors,\u201d he explained.<\/p>\n

In August, the Central Bank rate was increased to 6 percent, which resulted in the increase of interbank rate from 5.54 percent in the second quarter to 6.5 percent in the third quarter of 2022.<\/p>\n

However, Rwangombwa said they have not seen banks\u2019 lending rates to individuals or corporate institutions increase.<\/p>\n

Following this decision, the Central Bank will also reinstate the reserve requirement ratio to pre-Covid level of 5 percent effective January 1st, 2023.<\/p>\n

This is the ratio of money that a commercial bank must hold in reserve to the amount of money it has on deposit. This money is not allowed to be used in lending or investing activities.<\/p>\n

Explaining the decision, Thierry Kalisa, BNR’s Chief Economist, said that despite the positive economic performance recovering from Covid-19, the regulator still has to consider the current inflation by tightening money in circulation.<\/p>\n

Inflation status<\/b><\/p>\n

The central bank projects the rise of consumer prices to around 13.2 percent at the end of 2022. This is 1.1 percent higher than what was recently projected in August.<\/p>\n

\u201cDomestic food production linked to climate constraints and higher prices of inputs have led to surging food prices this year,\u201d the monetary policy committee reported.<\/p>\n

However, it says that inflation will decelerate towards the benchmark bank between 2 percent and 8 percent at the end of 2023.<\/p>\n

For More News And Analysis About Rwanda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Rwanda. The National Bank of Rwanda (BNR) has increased the lending rate from 6 percent to 6.5 percent as the country continues to tame inflation. Also known as the key repo rate, this is the fee at which the Central Bank lends to commercial banks. Adjusting it upwards or downwards allows the regulation […]<\/p>\n","protected":false},"author":84,"featured_media":29564,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,15,29],"tags":[760,763,758],"class_list":["post-29565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-head-lines","tag-africa-press","tag-africa-press-rwanda","tag-rwanda"],"yoast_head":"\nCentral bank increases lending rate to 6.5% to tame inflation - Rwanda<\/title>\n<meta name=\"description\" content=\"The National Bank of Rwanda (BNR) has increased the lending rate from 6 percent to 6.5 percent as the country continues ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Central bank increases lending rate to 6.5% to tame inflation\" \/>\n<meta property=\"og:description\" content=\"The National Bank of Rwanda (BNR) has increased the lending rate from 6 percent to 6.5 percent as the country continues ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation\" \/>\n<meta property=\"og:site_name\" content=\"Rwanda\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-16T08:51:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-11-16T09:05:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2022\/11\/postQueueImg_1668576076.75.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"557\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Central bank increases lending rate to 6.5% to tame inflation\",\"datePublished\":\"2022-11-16T08:51:05+00:00\",\"dateModified\":\"2022-11-16T09:05:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation\"},\"wordCount\":382,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2022\/11\/postQueueImg_1668576076.75.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Rwanda\",\"Rwanda\"],\"articleSection\":[\"all news\",\"Economy\",\"head lines\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation\",\"url\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation\",\"name\":\"Central bank increases lending rate to 6.5% to tame inflation - Rwanda\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2022\/11\/postQueueImg_1668576076.75.jpg\",\"datePublished\":\"2022-11-16T08:51:05+00:00\",\"dateModified\":\"2022-11-16T09:05:25+00:00\",\"author\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"description\":\"The National Bank of Rwanda (BNR) has increased the lending rate from 6 percent to 6.5 percent as the country continues ...\",\"breadcrumb\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#primaryimage\",\"url\":\"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2022\/11\/postQueueImg_1668576076.75.jpg\",\"contentUrl\":\"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2022\/11\/postQueueImg_1668576076.75.jpg\",\"width\":1000,\"height\":557,\"caption\":\"Central bank increases lending rate to 6.5% to tame inflation\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.africa-press.net\/rwanda\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Central bank increases lending rate to 6.5% to tame inflation\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/#website\",\"url\":\"https:\/\/www.africa-press.net\/rwanda\/\",\"name\":\"Rwanda\",\"description\":\"Just another Africa News Agency Sites site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.africa-press.net\/rwanda\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\",\"name\":\"cfeditoren\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Central bank increases lending rate to 6.5% to tame inflation - Rwanda","description":"The National Bank of Rwanda (BNR) has increased the lending rate from 6 percent to 6.5 percent as the country continues ...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation","og_locale":"en_US","og_type":"article","og_title":"Central bank increases lending rate to 6.5% to tame inflation","og_description":"The National Bank of Rwanda (BNR) has increased the lending rate from 6 percent to 6.5 percent as the country continues ...","og_url":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation","og_site_name":"Rwanda","article_published_time":"2022-11-16T08:51:05+00:00","article_modified_time":"2022-11-16T09:05:25+00:00","og_image":[{"width":1000,"height":557,"url":"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2022\/11\/postQueueImg_1668576076.75.jpg","type":"image\/jpeg"}],"author":"cfeditoren","twitter_card":"summary_large_image","twitter_misc":{"Written by":"cfeditoren","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#article","isPartOf":{"@id":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation"},"author":{"name":"cfeditoren","@id":"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"headline":"Central bank increases lending rate to 6.5% to tame inflation","datePublished":"2022-11-16T08:51:05+00:00","dateModified":"2022-11-16T09:05:25+00:00","mainEntityOfPage":{"@id":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation"},"wordCount":382,"commentCount":0,"image":{"@id":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2022\/11\/postQueueImg_1668576076.75.jpg","keywords":["Africa Press","Africa Press-Rwanda","Rwanda"],"articleSection":["all news","Economy","head lines"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation","url":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation","name":"Central bank increases lending rate to 6.5% to tame inflation - Rwanda","isPartOf":{"@id":"https:\/\/www.africa-press.net\/rwanda\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#primaryimage"},"image":{"@id":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2022\/11\/postQueueImg_1668576076.75.jpg","datePublished":"2022-11-16T08:51:05+00:00","dateModified":"2022-11-16T09:05:25+00:00","author":{"@id":"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"description":"The National Bank of Rwanda (BNR) has increased the lending rate from 6 percent to 6.5 percent as the country continues ...","breadcrumb":{"@id":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#primaryimage","url":"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2022\/11\/postQueueImg_1668576076.75.jpg","contentUrl":"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2022\/11\/postQueueImg_1668576076.75.jpg","width":1000,"height":557,"caption":"Central bank increases lending rate to 6.5% to tame inflation"},{"@type":"BreadcrumbList","@id":"https:\/\/www.africa-press.net\/rwanda\/economy\/central-bank-increases-lending-rate-to-6-5-to-tame-inflation#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.africa-press.net\/rwanda\/"},{"@type":"ListItem","position":2,"name":"Central bank increases lending rate to 6.5% to tame inflation"}]},{"@type":"WebSite","@id":"https:\/\/www.africa-press.net\/rwanda\/#website","url":"https:\/\/www.africa-press.net\/rwanda\/","name":"Rwanda","description":"Just another Africa News Agency Sites site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.africa-press.net\/rwanda\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb","name":"cfeditoren"}]}},"_links":{"self":[{"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/posts\/29565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/users\/84"}],"replies":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/comments?post=29565"}],"version-history":[{"count":0,"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/posts\/29565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/media\/29564"}],"wp:attachment":[{"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/media?parent=29565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/categories?post=29565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.africa-press.net\/rwanda\/wp-json\/wp\/v2\/tags?post=29565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}