Rwanda: Third Reviews under the Policy Coordination Instrument and the Arrangement under the Resilience and Sustainability Facility, and the First Review under the Standby Credit Facility Arrangement-Press Release; and Staff Report

The Rwandan economy continues its robust growth, notwithstanding the challenging external environment, repeated shocks, and ongoing fiscal consolidation. Headline inflation decelerated sharply in recent months owing to appropriately tight monetary policy stance and favorable developments in food prices. However, contractionary effects of the ongoing fiscal consolidation are still expected to materialize, and risks remain tilted to the downside. Policies supported by the PCI/SCF provide a valuable anchor for efforts to safeguard macroeconomic and external stability, address the short-run balance of payments needs arising from climate-related shocks, advance developmental objectives, and improve resilience. The ownership on the climate agenda under the RSF remains strong, with efforts to accelerate development of a credible pipeline of green projects bringing first results.