The National Bank of Rwanda has increased its key interest rate by 50 basis points to 7.25 percent in an effort to curb inflation in the near term, bucking a broader easing trend across Africa. The apex bank Governor, Soraya Hakuziyaremye, announced this decision on Thursday following the conclusion of the Monetary Policy Committee (MPC) meeting.

The move is the biggest taken by the bank since August 2023. This decision sets Rwanda apart from peers that are either holding rates steady or considering cuts as inflationary pressures moderate across the continent.

The MPC stated it would remain vigilant in its anti-inflation fight within its medium-term target. The bank added that further decisions will depend on its assessment of economic risks going forward.

The decision sets Rwanda apart from much of Africa, where policymakers in South Africa and Nigeria are still expected to cut rates as firmer currencies against the dollar and lower oil prices help cool inflation. This suggests that while inflation remains high, policymakers are confident it will moderate through the year if certain measures are taken.

In several African countries, central banks have taken different approaches to curb inflation. Earlier, Nairametrics reports that at its last meeting, the South African Reserve Bank’s Monetary Policy Committee held the benchmark rate steady at 6.75%.

Also, at its November 2025 meeting, the Monetary Policy Committee of CBN retained the Monetary Policy Rate at 27%, having earlier reduced it from 27.5% in September. The CBN has scheduled its 304th Monetary Policy Committee meeting for February 23 and 24, 2026.