Nationwide Bank of Rwanda lifts price 50bps to 7.25% 

The Nationwide Bank of Rwanda has elevated rate of interest by 50 foundation factors to 7.25 p.c in an effort to curb inflation within the close to time period, bucking a broader easing pattern throughout Africa.

The apex bank Governor, Soraya Hakuziyaremye, introduced this determination on Thursday following the conclusion of the Financial Coverage Committee (MPC) assembly.

The transfer is the most important taken by the bank since August 2023.

The choice units Rwanda aside from friends which might be both holding charges regular or contemplating cuts as inflationary pressures average throughout the continent.

What the bank is saying 

The MPC said it will stay vigilant in its anti-inflation struggle inside its medium-term goal.

The bank added that additional selections will rely upon its evaluation of financial dangers going ahead.

• “The MPC will proceed to carefully monitor financial developments and the inflation outlook. Ought to the highlighted upside dangers materialize, the Committee will assess the necessity for additional coverage changes, as applicable, to make sure that inflation converges to the goal vary of 2-8 p.c over the medium time period,” Hakuziyaremye mentioned. 
• “The Rwandan Franc (FRW) depreciated by 4.40 p.c towards the U.S. greenback as of December 2025, marking a slower tempo in comparison with the 9.42 p.c depreciation recorded over the identical interval in 2024.  
• “This pattern displays improved exterior sector situations, supported by stronger tourism receipts and elevated remittance inflows, which helped ease international change pressures. It additionally mirrors the constructive results of home international change market reforms, alongside the comparatively weaker U.S. greenback in international international change markets,” the apex bank Governor added.

Extra insights 

The choice units Rwanda aside from a lot of Africa, the place policymakers in South Africa and Nigeria are nonetheless anticipated to chop charges as firmer currencies towards the greenback and decrease oil costs assist cool inflation.

• Annual city inflation climbed to a greater than two-year excessive of 8.9% final month, from 8% in December.
• The bank expects inflation to stay barely above the 8% higher certain within the first half of 2026.
• It additionally expects inflation to ease again throughout the 2% to eight% goal vary earlier than the yr runs out.

This means that whereas inflation stays excessive, policymakers are assured it’ll average by the yr if sure measures are taken.

What it’s best to know

In a number of African nations, central banks have taken completely different approaches to curb inflation.

Earlier, BusinessTimes experiences that at its final assembly, the South African Reserve Bank’s Financial Coverage Committee held the benchmark price regular at 6.75%.

Additionally, at its November 2025 assembly, the Financial Coverage Committee of CBN retained the Financial Coverage Charge at 27%, having earlier decreased it from 27.5% in September.

The CBN has scheduled its 304th Financial Coverage Committee assembly for February 23 and 24, 2026.