The primary objective of the National Bank of Rwanda’s monetary policy is to ensure price stability, contributing to sustained macroeconomic stability. In the last two decades ending December 2018, the NBR conducted its monetary policy by targeting the quantity of money to achieve that objective. Under that monetary targeting framework, NBR managed to keep inflation low and stable, by providing the quantity of money in the economy - broad money aggregate - in line with inflation and economic growth objectives.
In January 2019, the National Bank of Rwanda shifted from the quantity-based monetary policy framework, to a price based approach, after five years of preparations.
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