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 (MPC) 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 2022 to 150 basis points. The MPC decided to hike to avoid second-round inflation effects and expects the increase, together with other measures coming from government, to bring the rate of price growth back within the central bank’s target range of 2% to 8% in the second half of next year, the governor said.
SOURCE: BUSINESS DAY LIVE
More Stories
Mo Ibrahim’s Index Looks at Africa’s State of Governance
France to Give Burkina Faso What It Wants
Africa Has to Work on Feeding Itself
Mali Basketballer Disappointed with Treatment after Whistleblowing
Kenya Changes the Rules of Engagement
For Many, the Pope’s Visit is the Peace they Need
Algeria Unveils Series of Policies Aimed at Eliminating its Dependence on Fossil Fuels
Lagos Seaport Garners Support from the Masses
Sierra Leone Women Given Right to Own Land
History About East Africa’s Art Scene
Uganda Launches its First Oil Drilling Programme
Looking at a Decade of Uber’s Operations in Africa