THE AFRICA TIMES | RWANDA — The central bank of Rwanda has raised its policy rate to 8.75%, an increase from the previous 8.25%. This decision was made on Thursday and aims to address rising inflation, which is partly influenced by the ongoing conflict in the Middle East.
Objectives of the Rate Increase
Central bank Governor Soraya Hakuziyaremye stated that the increase focuses on anchoring inflation expectations. It seeks to limit second-round effects and to steer inflation back within the bank’s target range of 2% to 8% by the second half of 2027.
Current Inflation Trends
Recent data from the national statistics office indicates that headline inflation rose to 14.5% year-on-year in July, up from 13.6% in
