The National Bank of Rwanda (BNR) has announced an increase in its key lending rate, raising it from 6.5%—set in May this year—to 6.7%.

Governor Soraya Hakuziyaremye, speaking at a press briefing on Thursday, said the decision was taken by the Monetary Policy Committee as part of its quarterly assessment of the country’s financial sector.

Economists note that such adjustments have a direct impact on market prices. Commercial banks are expected to raise the interest rates they charge borrowers, which in turn leads to higher costs for businesses. Traders who take out loans often pass those increased costs on to consumers, resulting in price hikes across the market.