Rwanda central bank raises interest rates as inflation exceeds target
The National Bank of Rwanda raised its key lending rate to 7.25 percent on Thursday. This move aims to curb inflation which hit 8.9 percent this past January.
The National Bank of Rwanda 
RW has raised its key lending rate by 50 basis points to 7.25% following a decision by the Monetary Policy Committee (MPC). The move comes as consumer inflation accelerated to 8.9% year-on-year in January, breaching the central bank's target band of 2–8%. This policy action is intended to bring inflation back within the target band and help sustain economic growth.
RW has raised its key lending rate by 50 basis points to 7.25% following a decision by the Monetary Policy Committee (MPC). The move comes as consumer inflation accelerated to 8.9% year-on-year in January, breaching the central bank's target band of 2–8%. This policy action is intended to bring inflation back within the target band and help sustain economic growth.The Monetary Policy Committee implemented the rate hike as an immediate response to the inflationary breach. The National Bank of Rwanda, working in conjunction with the Rwanda finance ministry and officials such as Soraya Hakuziyaremye, determined that the 50 basis-point increase was necessary to address the price pressures observed at the beginning of the year. The timing of this move reflects an immediate monetary-policy adjustment to the breach of the target, aligning with the central bank's stated forecasts and its readiness to act if inflation pressures intensify.
