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Uganda central bank extends rate pause, sees moderate inflation rise - REUTERS
KAMPALA, May 14 (Reuters) – Uganda’s central bank left its benchmark lending rate unchanged for the seventh policy meeting in a row on Thursday, saying it expects inflation to rise moderately in the second half of the year driven by the effects of the Iran war.
The Bank of Uganda held its Central Bank Rate at 9.75% where it has been since October 2024.
The bank revised up its near-term inflation projections and now sees core inflation ranging between 5.0% and 5.3% over the next 12 months.
That is just above its 5% medium-term target, but the bank said it thinks its policy stance is appropriate for now.
“It remains too early to fully assess the magnitude and the persistence of these effects … of the (Iran) conflict, as well as its implications for the Ugandan economy,” Governor Michael Atingi-Ego told a press conference.
Annual inflation rose slightly in April, reaching 3.0% from 2.8% in March.
The central bank on Thursday stuck to its economic growth forecast of between 6.5% and 7% for the current fiscal year that ends in June.
