Uganda leaves key rate unchanged at 10pc

February 07,2018 – The Bank of Uganda’s Monetary Policy Committee has left its key policy rate unchanged at 10pc for the second time, citing a shaky inflation outlook. Annual inflation peaked at 2.7pc in January from 2.2 percent in December, the first such rise in five months.

The CBR has been held at 10pc at two previous sittings of the MPC since it was first raised by 100 basis points last October. The rate plateaued out at 9pc earlier early last year as the central banker struggled to rejig commercial bank credit.

The bank is still holding on its economic growth projection of 6.3pc for fiscal 201/19 buoyed by public spending and a liberal monetary stance. The weather and budget performance remain underside risks however.

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