The Monetary Policy Committee of the National Bank of Rwanda has increased the Central bank rate by 100 basis points to 8.25 per cent, citing rising inflation and growing risks to the country’s economic outlook.
Announcing the decision on Thursday, Soraya Hakuziyaremye said the move demonstrates the Central bank’s commitment to maintaining price stability and protecting the purchasing power of households.
The latest increase follows a 50-basis-point rise in February 2026, when the policy rate was raised to 7.25 per cent in an effort to curb inflationary pressures.
According to the central bank, inflationary pressures have intensified in recent months. Headline inflation rose to 9.1 per cent in the first quarter of 2026, up from 7.4 per cent in the final quarter of 2025, driven by higher prices for food, energy and other core goods.
More recent data showed inflation accelerated further to 13 per cent in April compared with 9.2 per cent in March 2026, significantly exceeding the Central bank’s target range of 2 to 8 per cent. The Bank also revised its 2026 inflation forecast upwards, projecting average inflation of 13.9 per cent, compared with an earlier estimate of 9.4 per cent released in February 2026.
Officials attributed the worsening outlook to both domestic and international factors, including rising energy costs linked to the conflict in the Middle East and increased transport expenses resulting from shipping disruptions following the closure of the Strait of Hormuz.
The Central bank said the rate increase, together with Government measures aimed at easing inflationary pressures, is expected to help bring inflation back towards its medium-term target of 5 per cent.