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Rwanda central bank hikes its key repo rate to 6.75%
5:16 CAT | 21 Aug 2025
FILE - A general view shows streets in Kigali, Rwanda, April 26, 2024. [File photo: Reuters/Jean Bizimana]
Rwanda’s central bank raised its key repo rate by 25 basis points on Thursday due to accelerating inflation that increases risks to the economic outlook, Governor Soraya Hakuziyaremye said.
The bank raised the rate to 6.75% from 6.5% after holding it steady at its three previous meetings.
Annual inflation accelerated to 7.3% year-on-year in July from 7.0% a month earlier. The central bank aims to keep inflation within a range of 2% to 8%, while aiming to keep it closer to a medium-term target of 5%.
“We see that headline inflation is projected to average 7.1% for this year, reducing back to 5.6% in 2026,” Hakuziyaremye told a press conference.
She cited risks to the outlook stemming from “adverse weather conditions”, adding that these could impact agricultural production, geopolitical tensions and trade uncertainties.
Rwanda’s economy mostly depends on agriculture, tourism and manufacturing.
The finance ministry forecasts economic growth of 7.1% this year from 8.9% last year.
Source: Reuters
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