KIGALI, May 22 – The National Bank of Rwanda has increased its key interest rate by 100 basis points to 8.25%, its second hike in a row as the country continues to deal with high inflation.
The bank said the move is aimed at bringing inflation back within its target range of 2% to 8%, after prices rose to 13% in April compared to the same period last year.
Governor Soraya Hakuziyaremye said inflation is expected to stay above the target range until at least 2027 before gradually slowing down. She explained that both global and local factors are driving prices up, including conflict linked to Iran, weaker food supply, and rising charcoal costs affected by weather conditions.
Even with these pressures, the central bank said the economy is still performing strongly. Rwanda’s economy grew by 9.4% in 2025, and activity data shows demand continued into the first quarter of this year.
However, the bank has now raised its inflation forecast to 13.9% for 2026, up from 9.4% earlier this year when it also increased the policy rate by 50 basis points.
The latest decision shows the bank is trying to control rising prices while still supporting economic growth in a fast-changing environment.
