The Bank of Uganda’s Monetary Policy Committee (MPC) held the Central Bank Rate (CBR) at 12% for November 2026, judging financial conditions sufficiently tight despite a higher inflation outlook and weakening growth, following October’s 225-basis-point increase from 9.75%. The central bank widened the CBR band to ±3 from ±2 percentage points to support tight shilling liquidity and raised the rediscount and bank rates to 16% and 17%, respectively. Core inflation is projected to average 6.0–6.5% over the next 12 months, above the medium-term target of 5%, with risks skewed to the upside. Economic growth is forecast at 5.5–6.0% in FY2026/27, revised down because of tighter financial conditions, shilling depreciation and elevated energy prices. A worsening current account deficit could put further pressure on the shilling and domestic prices. The Middle East conflict has raised global energy prices, while renewed global inflation could prompt further monetary tightening in advanced economies and worsen external financial conditions. The MPC said the rate hold allows previous policy measures time to work through the economy, with future decisions guided by incoming data, the evolving inflation outlook and the balance of risks.
Bank of Uganda Holds Central Bank Rate at 12%
The Bank of Uganda held its Central Bank Rate at 12% for November 2026, judging financial conditions sufficiently tight despite a higher inflation outlook and weakening growth. It widened the rate’s band to ±3 from ±2 percentage points and raised the rediscount and bank rates to 16% and 17%, respectively.