Rwanda Should Be Ready to Raise Rates More Aggressively: IMF

In view of rising inflation, the National Bank of Rwanda should be ready to tighten monetary policy more aggressively to anchor inflation expectations, the International Monetary Fund says in a report after board review of Rwanda.

• “Implementation of the interest-rate-based monetary policy framework should continue with greater exchange-rate flexibility to ensure external sustainability”
• Urges Rwanda to fastrack fiscal consolidation and step up efforts to broaden the tax base, phase out tax exemptions, enhance tax compliance, and identify cost-savings
• Growth is expected to moderate to 6% in 2022 from 10.9% in 2021
• Headline inflation is projected to rise to 9.5% this ...