Inflation should be closely watched

Last week, the central bank raised the Key Repo Rate (rate at which it lends to commercial banks), by 0.5 percentage point to 6.5 per cent, in an effort to control inflation.The Central Bank’s decision was stirred by the high rise in the prices of goods and services.Rwanda’s inflation rose to 7.52 per cent in August, the lowest in the East African region. Inflation is expected to remain at single digit at 8.2 per cent by the end of the year.