Uganda Holds Rate at 9.75% as Iran War Fuels Inflation Concerns
By Aboki Forex —
KAMPALA – Uganda’s central bank has left its benchmark lending rate unchanged for the seventh consecutive policy meeting. The Bank of Uganda held the Central Bank Rate at 9.75% on Thursday, a level it has maintained since October 2024.
The bank now expects inflation to rise moderately in the second half of the year. It blamed the effects of the Iran war for the uptick. Core inflation is projected to range between 5.0% and 5.3% over the next 12 months. That is just above the bank’s medium-term target of 5%.
Governor Michael Atingi-Ego told a press conference it remains too early to fully assess the magnitude and persistence of the conflict’s effects. He said the bank believes its policy stance is appropriate for now.
Annual inflation rose slightly in April, reaching 3.0% from 2.8% in March. The central bank stuck to its economic growth forecast of between 6.5% and 7% for the current fiscal year ending in June.