KIGALI —
In announcing the rate hike, the National Bank of Rwanda said pressures from inflation, which hit 20.7% in January, were expected to remain in the short term before inflation falls to below 8% by the end of the year.
The National Institute of Statistics in Kigali said January's rate was down from the 21.6% inflation rate recorded for December, 2022.
Still, the government says, the rate hike is needed to ensure inflation does not go soaring out of control.
The war in Ukraine pushed up commodity prices last year, causing average headline inflation to leap to 13.9% in 2022, up from 0.8% the previous year, the bank said.
