Raging Inflation Spurs Rwanda to Hike Rate by Most Since 2009
- Central bank sees inflation averaging 12.1% in 2022, saw 9.2%
- Central bank expects inflation to return to target in 2023
A shop owner negotiates with customers in Kigali, Rwanda, on March 23.
Photographer: Simon Wohlfahrt/AFP/Getty ImagesThis article is for subscribers only.
Rwanda’s central bank unleashed its biggest interest-rate hike in more than 13 years as runaway inflation caused it to revise its forecasts upwards.
The monetary policy committee increased the key policy rate to 6% from 5%, Governor John Rwangombwa said in the capital, Kigali. That’s the most since January 2009 and takes the cumulative rate increases for this year to 150 basis points.