Uganda’s central bank maintained its benchmark lending rate at 9.75% this Thursday, marking the seventh consecutive meeting without a policy shift.
Governor Michael Atingi-Ego confirmed the decision as the bank monitors a projected rise in inflation during the year’s second half.
Economic forecasts suggest that the ongoing conflict involving Iran will likely drive up domestic prices and disrupt global supply chains.
The Bank of Uganda now anticipates core inflation will fluctuate between 5.0% and 5.3% over the next twelve months.
This revised projection sits slightly above the official medium-term target of 5%, yet officials believe the current stance remains appropriate.
Policymakers noted that it is still too early to measure the full magnitude of the regional war’s impact on Uganda.
Annual inflation witnessed a minor uptick in April, climbing to 3.0% as the economy grapples with shifting geopolitical pressures.
The nation’s fiscal landscape remains a theater of caution, with the bank balancing price stability against external military shocks.
Growth forecasts for the current fiscal year remain steady, with the bank projecting an expansion between 6.5% and 7%.
Despite the surrounding global turbulence, the central bank aims to anchor the shilling against the rising tides of international instability.
The financial heart of Kampala beats with measured restraint as the world watches the escalating tensions across the Middle East.