Uganda’s central bank has left its benchmark lending rate unchanged at 9.75 percent for the seventh consecutive policy meeting, noting that the current monetary stance remains appropriate to support economic growth while keeping inflation under control.
The Bank of Uganda said inflation remains below its medium term target of 5 percent, giving policymakers room to maintain current rates despite uncertainty in the global economy. Annual inflation edged slightly higher to 3.2 percent in January from 3.1 percent in December, but officials said price pressures remain manageable.
Central bank Governor Michael Atingi Ego said the apex bank expects inflation to stay within a range of about 3.8 percent to 4.3 percent during 2026 before gradually stabilising around the bank’s target level.
The decision reflects Uganda’s relatively stable macroeconomic environment compared to several other African economies still battling elevated inflation and currency pressure. The Ugandan shilling has remained comparatively stable, while lower global food and energy prices have helped contain domestic inflation.
The central bank also expressed confidence in Uganda’s growth outlook. Economic growth is projected between 6.5 percent and 7 percent for the current fiscal year ending in June 2026, with medium term growth expected to rise toward 8 percent as public infrastructure spending and oil related investments accelerate.
Uganda is preparing to begin commercial crude oil production later this year, a development expected to significantly reshape the country’s economy and government revenues over the coming years. Major infrastructure projects linked to the oil sector, including pipelines and processing facilities, have already increased investment activity across the country.
Despite the relatively positive outlook, the central bank warned that risks remain. Policymakers cited geopolitical tensions, global market volatility, stronger domestic demand and possible weather related disruptions as factors that could affect inflation and growth in the coming months.
The latest decision positions Uganda among a small group of African economies maintaining stable monetary policy as inflation gradually eases across parts of the continent. Several other African central banks have either begun cutting rates or are considering easing cycles after years of aggressive tightening aimed at controlling inflation and currency weakness.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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