Rwanda and Uganda this week adopted divergent policies to shield their economies against uncertainties.
National Bank of Rwanda (NBR) on Thursday raised its policy rate by 50 basis points in an effort to contain inflationary pressures and protect economic growth.
Bank of Uganda (BoU) on the other hand cut the rates to 9.5 percent for August in a surprise move that highlighted Kampala’s strong worries among monetary policy makers surrounding tough economic conditions affecting several sectors.
The NBR raised its rate to 7.5 percent, having initially sustained it at 7 percent despite pressure from the IMF to further tighten monetary policy.
In May, the Rwandan central bank had decided to maintain its policy rate unchanged at 7 percent.
Rwanda sees inflation easing, keeps CBR unchangedJohn Rwangombwa, NBR Governor, said no further increments are expected as inflation is expected to be contained to single digits by next year.“This decline is expected for all main components: Core, energy and fresh food inflation. We don’t see this rate increasing further, and we remain optimistic that inflation further reduces to our benchmark by next year…” Rwangombwa said announcing the rate-setting – committee’s decision.
Source : Zawya