The headquarters of the National Bank of Rwanda, Rwanda’s central bank, in the Nyarugenge district of Kigali, Rwanda on Thursday, July 20, 2023. The World Bank cut Rwanda’s GDP growth estimate to 5.8% from 6.2%, as it expected flooding during April and May to result in slowed economic expansion. Photographer: Bing Guan/Bloomberg via Getty Images

KIGALI, Nov 21 (Reuters) – Rwanda’s central bank held its key interest rate at 6.5% on Thursday after cutting it at the last two rate decisions this year.

Governor John Rwangombwa told reporters that the decision was based on uncertainties in the performance of the agriculture sector and that the central bank felt its policy stance could keep inflation within its 3%-8% target range.

“We think for now (the rate) is good enough to maintain inflation within our band,” he told a news conference.

Annual inflation has remained under 6% this year and stood at 3.8% in October.

The decision follows a 50-basis-point cut to the National Bank of Rwanda’s Central Bank Rate in August, and a similar-sized cut in May.

(Reporting by Philbert Girinema; Writing by Hereward Holland; Editing by Alexander Winning)

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