Central Bank Governor Soraya Hakuziyaremye at a press briefing after the policy meeting in Kigali.
The National Bank of Rwanda has raised its benchmark interest rate by 100 basis points on Thursday, tightening monetary policy as inflationary pressures continue to build despite strong economic growth.
The central bank’s Monetary Policy Committee increased the Central Bank Rate to an 8.25% upper range from 7.25%, citing what it described as “more persistent inflationary pressures” and a worsening inflation outlook.
“We have taken this decision to safeguard price stability,” said Central Bank Governor Soraya Hakuziyaremye at a press briefing after the policy meeting in Kigali.
She said inflation was expected to remain elevated through much of 2026, staying above the central bank’s preferred ceiling of 8% until the second quarter of 2027.
The rate increase comes as Rwanda’s economy continues to expand at a strong pace, buoyed by growth across sectors including manufacturing, mining, transport, construction and financial services.
The central bank said economic momentum seen in 2025 was expected to continue into early 2026.
At the same time, policymakers warned that external shocks were intensifying price pressures in the import-dependent economy.
The Central Bank cited the war in the Middle East, rising global energy and shipping costs, and the risk of poor weather affecting domestic agricultural production as major concerns.
Rwanda’s external sector showed signs of improvement in the first quarter of 2026, with exports rising sharply, particularly traditional commodity exports, helping narrow the country’s trade deficit by more than 23% compared with a year earlier.
Still, the central bank signaled that inflation remains its overriding concern and suggested additional tightening measures could follow if price pressures fail to ease.
“The MPC stands ready to take further measures if necessary,” Governor Hakuziyaremye said, “to ensure inflation returns sustainably to the target range while supporting long-term economic stability.”
