Rwanda Central Bank maintains its rate at 6.5%

The National Bank of Rwanda (BNR) has decided to keep the Central Bank Rate (CBR) at 6.5 percent for the next three months, in a move the bank says considered as sufficient to maintain inflation within the target range. The decision was announced on May 14, 2025, following a meeting of the Monetary Policy Committee (MPC). The CBR acts as a benchmark for commercial banks and helps determine borrowing and lending costs. “Based on the current forecasts, the MPC decided to maintain the CBR at 6.5 percent, a level considered adequate to keep inflation within the target range,” the statement relea

The National Bank of Rwanda (BNR) has decided to keep the Central Bank Rate (CBR) at 6.5 percent for the next three months, in a move the bank says considered as sufficient to maintain inflation within the target range. The decision was announced on May 14, 2025, following a meeting of the Monetary Policy Committee (MPC). The CBR acts as a benchmark for commercial banks and helps determine borrowing and lending costs. “Based on the current forecasts, the MPC decided to maintain the CBR at 6.5 percent, a level considered adequate to keep inflation within the target range,” the statement released by BNR said. In the first quarter of 2025, inflation remained within the National Bank’s target range of 2 to 8 percent. Headline inflation rose to 6.7 percent, up from 5.2 percent in the previous quarter. This increase was mainly due to rising core and fresh food prices. However, energy inflation declined during the same period. “Core inflation increased to 6.1 percent from 5.4 percent, while fresh food inflation rose to 11.2 percent from 5.6 percent,” the Bank noted. “This was mostly due to unusually low prices in the same period last year, especially for vegetables, as well as the increase in meat prices.” Despite these increases, average inflation for 2025 is projected at around 6.5 percent and expected to drop to 3.9 percent in 2026. The BNR also reported continued economic resilience. Rwanda’s real GDP grew by 8.9 percent in 2024, supported by strong sector performance and a rebound in agriculture.