The National Bank of Rwanda’s Monetary Policy Committee raised the Central Bank Rate by 50 basis points to 8.75% from 8.25%, continuing its tightening cycle as inflation remained elevated and outlook risks increased. Over the past year, the rate was raised by 25 basis points in August 2025 and stood at 6.75% in November 2025. Inflation reached 14.5% in July 2026 and is projected to average 13.1% in 2026, while the economy grew 10.0% year on year in the first quarter and activity remained strong in the second quarter. The merchandise trade deficit widened to USD 821.9 million despite strong export growth, as imports also increased. The central bank cited potential food-price pressure from El Niño and the risk that Middle East tensions could keep international commodity prices elevated. It expects the rate increase to anchor inflation expectations, limit second-round effects and support inflation’s return to the target range in the second half of 2027.
2026-08-27National Bank of Rwanda
National Bank of Rwanda Raises Central Bank Rate by 50 Basis Points to 8.75%
The National Bank of Rwanda raised the Central Bank Rate by 50 basis points to 8.75% as inflation reached 14.5% in July 2026 and outlook risks increased. The move aims to anchor inflation expectations and return inflation to the target range in the second half of 2027.