This is among the issues explained by the Governor of the National Bank of Rwanda (BNR), Soraya Hakuziyaremye, during a press conference. She stated that in order to curb the rising inflation rate, efforts must also focus on strengthening the agriculture sector, including increasing loans allocated to farmers.
She said, “What is evident is that during the first quarter of this year, prices will remain high. However, based on our forecasts, there is hope that by the end of the year, the inflation rate will have decreased to 2.8%.” She emphasized that this will largely depend on the level of effort invested in the agriculture sector.
BNR further reported that in January this year, inflation stood at 8.9%, compared to 8% in December 2025, according to data published by the National Institute of Statistics of Rwanda.
In the fourth quarter of 2025, inflation increased to 7.4%, up from 7.2% in the third quarter. This increase was mainly driven by higher core inflation (which excludes fresh food and energy products), outweighing the slowdown observed in prices of perishable food items.
BNR explained that inflation exceeded its target range of 2% to 8%, reaching 8.9% in January 2026, up from 8.0% in December of the previous year.
In the coming months, BNR expects inflation to continue rising and remain above 8% for some time. However, it also explained that inflationary pressures are expected to ease later, allowing inflation to gradually return within the target range by the end of 2026.
Governor Soraya Hakuziyaremye stated: “Given the continued increase in inflationary pressures and the revised outlook for rising prices, the Monetary Policy Committee has decided to raise the Central Bank Rate from 6.75% to 7.25%.”
“This decision to increase the Central Bank’s policy rate is a carefully considered step aimed at bringing inflation back within BNR’s target range of 2% to 8%, in order to prevent market price instability. This is essential to sustaining our country’s economic growth and protecting the purchasing power of Rwandans in meeting their daily needs over the medium term.” She added.
BNR also noted that despite ongoing global trade and geopolitical challenges, the global economy grew by 3.3% in 2025, and is expected to maintain the same growth rate in 2026.
Rwanda’s economy continued to record strong growth, expanding by an average of 8.7% in the first three quarters of 2025, compared to 7.2% growth recorded in 2024.
On the other hand, the Rwandan franc depreciated by 4.4% against the US dollar in December 2025. This represents a smaller depreciation compared to the 9.42% recorded in December 2024.
