Bank of Uganda maintains central bank rate at 9.75% as inflation remains stable at 3.45%, signaling cautious monetary policy.
Kampala, Uganda — The Bank of Uganda has kept its central bank rate at 9.75%, marking the fourth consecutive meeting without a change. The decision reflects a cautious approach as inflation remains stable at 3.45%.
Governor Michael Atingi-Ego said: “Given global uncertainties and elevated risks to inflation, the Monetary Policy Committee has opted for a cautious stance. Our focus is on ensuring price stability while supporting economic growth.”
The Monetary Policy Committee (MPC) highlighted that the rate is appropriate for maintaining inflation within target while fostering economic growth. Core inflation is projected to remain between 4.5% and 4.8% in the 2025/2026 fiscal year, supported by stable exchange rates, improved food supply, and lower global oil prices.
By maintaining the rate, the Bank of Uganda signals confidence in the economy’s resilience while keeping borrowing costs steady for households and businesses. This move also helps maintain investor confidence and supports long-term economic planning.