The Central Bank, this week, announced that the 2012 projected growth rate for the economy is 7.6 per cent. Though this is lower than the 8.8 per cent growth rate last year, there is no doubt that with the weak global economy, the projected growth rate is remarkable. To achieve this, government will have to control inflation and according to the Central Bank, the target is to contain it at a single digit, not exceeding 7.5 per cent. Throughout last year, inflation was one the biggest policy challenges for the central bank and the Treasury, more so that regional countries like Uganda and Kenya , where Rwanda is net importer faced high inflationary pressures.  However, Rwanda managed to maintained relatively low inflationary pressures compared to her counterparts in the EAC thanks to the National Bank of Rwanda (NBR), which periodically scrutinised market trends to determine interest rates.The Central Bank raised the key repo rate twice in the last quarter. This coupled with government’s sound fiscal policy ensured stable fuel and food prices on the local market. And, although the Central Bank projects a single digit inflation rate - 7.5 per cent - policy makers need to continue monitoring market trends to make sure that the economy is cushioned against external economic challenges.This will require relentless policy coordination between the Central Bank and government. Government must also continue supporting the agriculture sector to ensure food security and increase investments in the energy sector. Food and energy prices are some of the main drivers of inflation in Rwanda.