The Decision
The National Bank of Rwanda (BNR) raised the Central Bank Rate from 8.25% to 8.75% on 27 August, after its Monetary Policy Committee met on 26 August. It is the third increase of 2026: the rate went from 6.75% to 7.25% in February and to 8.25% in May, two full percentage points in six months.
Governor Soraya Hakuziyaremye said the move is meant to anchor inflation expectations and bring inflation back into the 2% to 8% target range in the second half of 2027.
Why
Inflation reached 14.5% in July. The bank now expects it to average 13.1% over 2026 and to ease to about 7.9% in 2027. The economy is running fast at the same time: it grew 10% in the first quarter.
What It Means for Borrowers
Banks do not move mortgage rates in step with the central bank, and average lending rates were close to 16% in the second quarter. But a higher policy rate raises what banks pay for money, and some of that usually reaches borrowers.
To put a number on it: a RWF 50 million mortgage over 20 years at 16% costs about RWF 695,600 a month. If a bank passed the whole half point on, taking the rate to 16.5%, the payment would rise to about RWF 714,500, roughly RWF 18,800 more every month. Run your own figures in the mortgage calculator.
What It Means for Prices
Dearer credit tends to weigh first on buyers who borrow and on developers who build with loans. Before committing to a plot, check what it is worth with the free value check.
Sources
- CNBC Africa: Rwanda central bank raises its policy rate to 8.75% (27 August 2026)
- WebRwanda: Rwanda raises key rate to 8.75% in third straight move (27 August 2026)
- Rwanda Bankers' Association: Central Bank Rate increased to 7.25% (February 2026)
- The New Times via allAfrica: Central Bank raises policy rate to contain rising inflation (21 May 2026)