Bank of Uganda Holds Lending Rate at 12% Amid Inflation Warnings

Uganda's Central Bank Holds Key Rate at 12%

The Bank of Uganda held its benchmark rate at 12% on Monday after headline inflation rose to 5.8%, saying its emergency hike needs time to work.

Bank of Uganda holds lending rate at 12% amid inflation warnings

Central Bank keeps rate unchanged while predicting sharp inflation rise

BoU cuts Uganda’s economic growth forecast to 5.5–6.0% as inflation pressures mount

The Bank of Uganda has cut Uganda’s economic growth forecast for FY2026/27 to 5.5–6.0 percent and raised its inflation projections, with headline inflation now expected to average 7.5–8.0 percent over the next 12 months as a weaker shilling and higher international energy prices weigh on the economy. In its monetary policy statement issued on November 9, 2026, the central bank lowered its growth projection from 6.0–6.5 percent, citing tighter gl…