The Bank of Uganda (BoU) has kept its benchmark lending rate unchanged at 9.5% for the fifth consecutive meeting, maintaining a cautious stance as inflation remains stable and economic activity shows moderate recovery.
Governor Michael Atingi-Ego said the decision reflects the central bank’s commitment to balancing growth and price stability amid global uncertainties. “The current monetary policy stance remains appropriate to keep inflation close to the medium-term target of 5% while supporting economic activity,” he said during a post-meeting briefing in Kampala.
Annual headline inflation in Uganda stood at 3.4% in September, well below the central bank’s target, according to figures from the Uganda Bureau of Statistics. The BoU noted that domestic demand is gradually improving, supported by public investment and agricultural recovery, but warned of risks from volatile global oil prices and regional trade disruptions.
As reported by Bloomberg and Reuters, the central bank projects Uganda’s economy to expand by 5.6% in 2025, driven by higher export earnings and ongoing infrastructure projects. The next monetary policy review is scheduled for December 2025.
