The Bank of Uganda’s Monetary Policy Committee on 14 May 2026 left the Central Bank Rate (CBR) unchanged at 9.75 percent, judging the existing stance sufficient to contain inflation that, while still below the 5 percent medium-term target at 3.0 percent headline and core in April, faces upward pressure from the Middle East conflict-driven surge in global oil prices. The CBR has been steady at 9.75 percent since at least May 2025. The policy band remains ±2 percentage points, keeping the rediscount and bank rates at 12.75 percent and 13.75 percent, respectively; the cash reserve requirement was raised in March to 11 percent from 9.5 percent to tighten banking-system liquidity. Core inflation is now projected at 5.0–5.3 percent over the next 12 months before easing to the 5 percent target, while real GDP grew 6.7 percent in the first half of FY2025/26 and is forecast at 6.5–7.0 percent for the full fiscal year amid resilient private-sector activity. The Uganda shilling has depreciated about 5.4 percent against major currencies between February and April, reflecting oil-related external pressures. Globally, the bank highlights elevated geopolitical risks and higher energy prices, with potential for further tightening by advanced-economy central banks. The committee reaffirmed its data-dependent approach and said it stands ready to adjust policy if risks to inflation or growth materialise.
Bank of Uganda 2026-05-14
Bank of Uganda keeps Central Bank Rate unchanged at 9.75 percent
Bank of Uganda on 14 May left the Central Bank Rate unchanged at 9.75 %, maintaining the ±2 pp band, as April headline and core inflation remain at 3 % but are expected to reach about 5 % over the next year amid oil-price pressures. The committee said the existing stance is adequate for now and pledged data-dependent adjustments if inflation or growth risks materialise.