Rwanda raises policy rate to maintain downward inflation trend

Rwanda’s central bank raised its main lending rate by another 50 basis points to 7.5% (RWREPO=ECI) in an effort to maintain a downward inflation trend, its governor said on Thursday.

Annual inflation peaked at 21.7% in November last year, falling to 11.9% in July (RWCPIY=ECI), but it is still above the National Bank of Rwanda’s preferred 2%-8% target band.

Uncertainties linked to geopolitical tensions and the risk of adverse weather conditions that could affect agricultural production were causing the bank to remain cautious, central bank governor John Rwangombwa said.
Source: Reuters