Bank of Uganda Maintains Key Interest Rate

The Bank of Uganda (BoU) has announced its decision to maintain the Central Bank Rate (CBR) at 9.75% for the thirteenth month in a row. This policy continuity reflects the Monetary Policy Committee’s assessment that domestic inflation remains well under control and within the target range, thereby supporting overall economic stability and predictability for both businesses and consumers.

The BoU's stance aims to anchor inflation expectations and support economic recovery while managing potential risks. However, the consistent maintenance of the rate comes amid underlying concerns about potential inflationary pressures stemming from increased government borrowing, particularly in the lead-up to the 2026 election cycle. The BoU appears to be balancing the need for stability with the careful management of domestic liquidity.