Kampala, October 7–Bank of Uganda has lowered its key lending rate by 25 basis points to 9.75% on Monday, saying that inflation was expected to remain below its target in the near term.
Inflation eased to 3.0% year-on-year in September below the central bank’s 5% medium-term target.
“The MPC… assesses that inflation is expected to remain below the target in the near term and that the risks to inflation are balanced, but acknowledges the inherent uncertainty in the outlook,” Central Bank Deputy Governor Michael Atingi-Ego told a news conference.
Uganda’s currency, the shilling, hit a record low against the dollar in late February but has since rebounded and is now 3% stronger against the greenback for the year to date.
