The National Bank of Rwanda has tightened its monetary policy by increasing the benchmark interest rate from 7.25% to 8.25%, a move aimed at controlling the continued rise in prices across the country.
The decision was announced by Soraya Hakuziyaremye the Governor of National Bank of Rwanda, “The adjustment is part of ongoing measures to reduce inflation and ensure economic stability. She noted that the country is currently facing strong inflationary pressures, prompting the central bank to take action in order to keep prices under control and protect the value of people’s income.” said Soraya.
Recent economic indicators show that inflation has continued to accelerate since late 2025, with the prices of essential goods and services rising sharply during the first months of 2026. In April alone, inflation reached levels higher than the central bank’s recommended range, increasing concerns over the cost of living.
According to the bank, several international developments have contributed to the situation, including higher global oil and gas prices caused by geopolitical tensions in the Middle East. Increased transportation and shipping costs following disruptions in major trade routes have also pushed up the prices of imported goods.
Economic experts explain that raising the key interest rate is intended to reduce excessive spending and borrowing in the economy, which can help slow down inflation over time. The central bank believes the measure will support efforts to restore inflation to a more manageable level in the medium term.
Despite the economic pressure, the Governor assured citizens that the government is continuing to intervene through fuel subsidies to help ease the burden on households. She also encouraged Rwandans to prioritize essential expenses and practice responsible financial planning as the country navigates the current economic challenges.
By: Eloi Isengwe