The Bank of Uganda maintained the Central Bank Rate at 9.75%, citing prevailing macroeconomic conditions and the need to preserve price stability. Inflation remained below the 5% target, while annual core inflation is projected to average 4.0% to 4.5% over the next 12 months. Economic growth reached 6.4% in fiscal 2025-26 and is projected at 7.0% to 7.5% in fiscal 2026-27 before averaging 8% over the medium term. Investment in mining and oil, increased credit and infrastructure spending could support growth, while geopolitical tensions, adverse weather and demand outpacing supply could increase inflationary pressure. The Uganda shilling appreciated 0.2% month on month in July 2026, supported by inflows from mining, energy, agriculture and remittances.
2026-08-25Bank of Uganda
Bank of Uganda holds Central Bank Rate at 9.75% as inflation remains below target
The Bank of Uganda held the Central Bank Rate at 9.75% as inflation remained below its 5% target. Core inflation is expected to average 4.0% to 4.5% over the next 12 months, while growth is projected at 7.0% to 7.5% in fiscal 2026-27.