FX.co ★ Rwanda’s Central Bank Tightens Policy Further

The National Bank of Rwanda raised its benchmark interest rate by 50 basis points to 8.75% at its August 2026 meeting, the highest level since 2009 and the third consecutive increase. Policymakers stated that the decision was intended to return inflation to the 2%–8% target range, while maintaining price stability and fostering sustainable economic growth.

Rwanda’s inflation showed no signs of easing in July 2026, accelerating to 13.8% from 12.7% in June and reaching its highest level since September 2023. This marked the fourth consecutive monthly rise in consumer prices, with recent inflationary pressures exacerbated by the ongoing conflict in the Middle East.