The Monetary Policy Committee of the Bank of Uganda maintained the Central Bank Rate (CBR) at 9.75% in August 2026, judging a cautious stance appropriate as energy-related price shocks could broaden despite an improved inflation outlook and resilient growth. The CBR has remained at 9.75% since August 2025. The CBR band remains at ±2 percentage points, with the rediscount and bank rates at 12.75% and 13.75%, respectively. Headline inflation rose to 4.0% in July, driven mainly by energy and food prices, while core inflation held at 3.4%, showing no broader spread of price pressures. The central bank projects core inflation to average 4.0-4.5% and headline inflation 5.5-6.0% over the next 12 months, compared with a 5% medium-term target. Economic growth is estimated at 6.4% in FY2025/26 and is projected to accelerate to 7.0-7.5% in FY2026/27, supported partly by strengthening private-sector credit and improved asset quality. The balance of payments recorded a USD 2.4 billion surplus in the 12 months to June, producing a similar increase in foreign exchange reserves, while the shilling stabilised after earlier depreciation. Volatile oil prices, geopolitical tensions, supply-chain disruption and protectionism remain key global risks. Future decisions will be data-dependent, with greater clarity on inflation’s path and drivers needed before further policy action.
Bank of Uganda2026-08-13
Bank of Uganda Maintains Central Bank Rate at 9.75%
The Bank of Uganda maintained the Central Bank Rate (CBR) at 9.75%, citing risks that energy price shocks could broaden despite an improved inflation outlook and resilient growth. Headline inflation is projected at 5.5-6.0% over the next 12 months, while economic growth is forecast at 7.0-7.5% in FY2026/27.