(Adds inflation forecast for Q1 2017)
By Clement Uwiringiyimana
KIGALI Dec 28 Rwanda's central bank on
Wednesday lowered its repo rate to 6.25 percent
from 6.50 percent to help stimulate credit growth, Governor John
Rwangombwa said while moderate pressure was expected on
inflation and the local currency, authorities needed "to give a
signal ... to the financial sector to continue supporting the
financing of the economy."
November's year-on-year overall inflation declined to 6.4
percent from October's 7.4 percent and the governor said the
rate would likely stand at 6 percent for December.
In the first quarter of 2017, inflation was seen averaging
5.8 percent, compared to an average of 4.5 percent in the first
three months of 2016, according to the governor.
Rwangombwa said credit to the private sector grew 7.4
percent in the first 11 months of this year, compared with 26.9
percent in the same period in 2015.
(Writing by Elias Biryabarema; editing by George Obulutsa and