Bank of Uganda Retains Policy Rate at 9.75% Amid Subdued Inflation

The Bank of Uganda has decided to retain its benchmark Central Bank Rate (CBR) at 9.75% in light of stable inflation outlook and to maintain accommodative monetary policy. The move, announced by the Governor of the Bank of Uganda on Monday, follows a recent monetary policy review.

The decision underscores the central bank's confidence in the current policy stance to provide sufficient support for economic activities while keeping inflation anchored around its medium-term target. Despite a slight uptick at the beginning of the year, inflationary pressures in Uganda are described as contained, supported by stable food prices and improved supply conditions.

The decision to hold the CBR steady reflects Uganda's relatively low inflation environment, allowing for an accommodative stance compared to countries facing acute price and currency pressures. This stands in contrast to Nigeria's recent monetary policy adjustments, highlighting the divergent monetary policy conditions across African economies.

Bank of Uganda reaffirms its commitment to maintaining macroeconomic stability and supporting sustained economic growth.