Central Banks
Rwanda Raises Rate to Nine-Year High on Stubborn Inflation
- Central bank hikes benchmark interest rate to 7% from 6.5%
- Bank sees inflation in double digits in first half of 2023
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Rwanda’s central bank raised interest rates to the highest level since 2014 as it sees inflation remaining in double digits in the first half of the year.
The monetary policy committee lifted the key rate to 7% from 6.5% because of prevailing economic conditions and to continue the fight against inflationary pressures that are affecting consumers’ purchasing power, Governor John Rwangombwa said in the capital, Kigali on Thursday. That takes combined rate increases since February to 250 basis points.