The National Bank of Rwanda (BNR) announced an increase in its interest rate to tackle the continued rise in market prices. The rate moved from 7.25% to 8.25%, a 1% rise from February, aimed at slowing inflation and keeping it within the Bank’s target range to safeguard economic growth.
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Governor Explains Monetary Policy Measures
Speaking to journalists, Governor Soraya Hakuziyaremye explained that earlier inflation pressures came from low agricultural production and the Ukraine war, which drove up global fuel and fertilizer prices.
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She noted that BNR raised the benchmark interest rate from 4.5% to 7.5% in 2022, while the Government introduced subsidies on fuel and fertilizer.
Together, these measures helped return inflation to the target range of 2%–8% by early 2024. BNR emphasized that monetary policy aims to prevent inflation from rising further.
Current Inflation and Future Projections
Hakuziyaremye said inflation has now exceeded 8%, reaching 13%. Projections suggest average inflation this year could hit 13.9%, reducing consumers’ purchasing power.
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She stressed that BNR cannot wait until inflation reaches 20%. Instead, immediate measures are taken to reduce pressure, with projections showing inflation could return to 7% by 2027. BNR’s long‑term objective is to keep average inflation below 5% over two to three years, supporting sustainable economic growth and protecting Rwandans’ purchasing power.
