Rwanda raises central bank rate to 7.25% as inflation breaches target band

• Central bank raises rate 50 basis points to 7.25%
• Inflation projected to exceed 8% in early 2026

KIGALI, RWANDA – Rwanda’s central bank has raised its key interest rate by 50 basis points to 7.25 percent as inflation edges above the government’s target band.

The National Bank of Rwanda’s Monetary Policy Committee (MPC) announced the increase after headline inflation climbed to 8 percent in December and 8.9 percent in January, breaching the upper limit of its 2-8 percent target range.