The National Bank of Rwanda kept its benchmark interest rate steady at 5.0 percent on August 14th 2019, to support domestic demand. Policymakers said that short-term indicators point to a sustained economic growth in the second quarter of the year, consistent with the projection of 7.8 percent growth in 2019. Meantime, inflation rose to an over one-year high of 1.6 percent in July, mainly due to lower food supply caused by drought conditions, and it is expected to average 2.0 percent in 2019. Interest Rate in Rwanda averaged 7.21 percent from 2005 until 2019, reaching an all time high of 9 percent in September of 2005 and a record low of 5 percent in May of 2019.
Interest Rate in Rwanda is expected to be 5.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Rwanda to stand at 4.50 in 12 months time. In the long-term, the Rwanda Interest Rate is projected to trend around 4.00 percent in 2020, according to our econometric models.