Bank of Uganda raises key rate by 50 basis points

Bank of Uganda (BoU) increased its primary lending rate by 50 basis points to 10.00 per cent on Wednesday, attributing the decision to the depreciation of the local currency and inflationary pressures.

The announcement was made during a special meeting by the BoU’s Monetary Policy Committee (MPC) following the shilling’s recent record low against the dollar.

Meanwhile, the BoU maintained the Central Bank Rate at 9.50 per cent.

According to LSEG data, the shilling has depreciated by approximately 3 per cent against the dollar since the beginning of the year, reaching a historic low of 3,955/3,965 against the US currency on February 26th.