The National Bank of Rwanda (BNR) has raised its key interest rate from 6.5% to 6.75%, aiming to curb the rising cost of goods and services. This decision follows an increase in the inflation rate, which reached 7.3% in July 2025, up from 7% the previous month. BNR stated that the move is intended to keep inflation within the target range of 2% to 8%.
BNR Governor Soraya Hakuziyaremye explained that the decision to raise the rate was made to address the continued impact of inflation and maintain price stability. She said: “We have decided to increase the BNR policy rate to 6.75% to keep inflation within our target range and protect consumers’ purchasing power.”
In the first quarter of 2025, Rwanda’s economy grew by 7.8%, mainly driven by growth in services and industry, along with stable agricultural output. This performance indicates resilience despite ongoing global economic uncertainties.
Second quarter indicators also show positive momentum, with international trade demonstrating strong gains. Exports increased by 15.5%, boosted by improved coffee production, mineral exports, and a 31.1% rise in non-traditional exports, particularly processed cooking oil and wheat flour.
Imports from neighboring countries decreased by 13.2%, contributing to a narrower trade deficit. While there was a moderate 3.3% increase in overall imports—mainly due to higher imports of maize, cooking oil, construction materials, and vehicles—these figures helped reduce the trade deficit by 2.9% compared to the same period in 2024.
Overall, BNR’s decision to raise the key interest rate reflects its continued commitment to strong monetary policy aimed at managing inflation.
