Rwanda’s central bank has raised its key interest rate to 8.75 percent, its highest level since 2009, as policymakers step up efforts to contain a sharp rise in inflation and prevent price pressures from becoming entrenched.
The Monetary Policy Committee increased the Central Bank Rate by 50 basis points from 8.25 percent, marking the third consecutive rate hike and taking the total increase since November 2025 to 175 basis points.
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The move underscores the National Bank of Rwanda’s increasingly hawkish stance as inflation continues to climb well above the bank’s target range.
Consumer price growth accelerated from 9.1 percent in the first quarter of 2026 to 13.2 percent in the second quarter, before reaching 14.5 percent in July. The central bank expects inflation to average 13.1 percent this year, although that is lower than its previous forecast of 13.9 percent.
