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Investing.com -- The central bank of Rwanda has decided to maintain its key interest rate at 6.5%, marking the second consecutive decision to hold the rate steady, as the bank anticipates inflation to stay within its target range.
In January, the annual inflation rate climbed to 7.4%, nearing the upper limit of the bank’s target range of 3%-8%. Despite this rise, the bank has made it clear that it does not plan to adjust the key interest rate at this time.
In addition, the central bank has increased its average inflation forecast for this year. The bank now expects inflation to average around 6.5%, a rise from the previous estimate of 5.8%.
Looking ahead to the following year, the bank predicts a decrease in inflation, forecasting a rate of 4.1%.
The bank’s decision to keep the key interest rate unchanged reflects its expectation that inflation will remain within the target range.
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