Rwanda’s central bank lifted its key repo rate by 25 basis points to 6.75%, stepping up efforts to rein in rising price pressures. CNBC Africa notes that the adjustment follows steady inflationary momentum, with officials warning of risks from volatile food prices and global economic headwinds.
Annual inflation edged higher to 7.3% in July from 7.0% in June, breaching the central bank’s medium-term anchor of 5% though still within its 2%–8% tolerance band. Data from Investing.com shows that policymakers now expect inflation to average 7.1% in 2025 before easing to 5.6% in 2026.
Governor Soraya Hakuziyaremye stressed that the rate hike reflects the bank’s commitment to stabilizing prices amid external shocks and domestic supply challenges. She pointed to weather-related disruptions and trade uncertainties as potential drivers of continued inflationary pressure.
The move signals a tighter credit environment for businesses and households, with borrowing costs set to rise. Analysts highlighted that while the decision may weigh on credit growth in the near term, it could strengthen investor confidence by underscoring Rwanda’s proactive monetary stance.
