The Central Bank has maintained a tight monetary stance by keeping the key repo rate at 7.5 per cent.The key repo rate is the interest rate at which the central bank lends money to commercial banks. Some economists suggest that the central bank should tighten the monetary policy to maintain prudent measures while others call for a slight easing of the monetary policy to increase commercial banks’ lending to the private sector.  Economic outlook in regional economies like Kenya, Uganda and Tanzania—some of Rwanda’s major trade partners—has improved with easing inflationary pressures while their respective currencies have showed signs of rebound against the dollar.There are also signs of global economic stabilisation despite some downward risks related to weaknesses in labour and housing markets in developed countries as well as financial tensions in Europe.Back home, credit to the private sector has been growing steadily throughout the year even as the Central Bank’s policy rate has been relatively high. The inflation rate has been contained in single digits while the only drawback has been the modest depreciation of the Rwandan franc vis-a-vis the US dollar.Despite the positive economic outlook internationally, regionally and on the domestic scene, the Central Bank needs to remain prudent to maintain moderate inflationary pressures and restore exchange rate stability.  This would also help the economy to endure any global economic shocks and regional crises.With sufficient liquidity within the banking system and a projected robust in economic growth, it is prudent for the Central Bank to maintain its current policy stance.