The central bank of Rwanda announced on February 17, 2022 that it had raised its key rate by 50 basis points to 5%. A decision taken by its monetary policy committee meeting on February 15 and which analyzed recent economic developments in the country.
“To ensure that inflation is contained at an adequate level while continuing to support the economic recovery, the MPC committee has decided to increase its key CBR rate (intended to regulate short-term interbank lending rates) from 50 basis points to 5%”, reads a note from the issuing institute signed by Governor John Rwangombwa. Who adds that this new orientation of monetary policy would be adequate to continue to support the economy while containing inflation in the medium term and minimizing the negative effect on purchasing power.
In January, inflation rose to 4.3% against 1.9% in December, while the central bank’s objectives place the rate at 5% for the whole of 2022.
This is the first rate hike since April 2020, and its highest level in about 10 years.
