Uganda central bank keeps rates at 9.5%

The Bank of Uganda (BoU) left its benchmark rate unchanged at 9.5 per cent as inflation remains below its medium-term target of five per cent, according to Monetary Policy statement on Tuesday.

The headline inflation rose to 2.8 per cent in January compared to 2.6 per cent in December 2023 and the core inflation grew to 2.4 per cent from 2.3 per cent during the same period, the statement added.

The inflation is expected to stay around three per cent through the first half of 2024, while the core inflation is projected to rise between 4.5-5 per cent in fiscal year 2024-25, the statement mentioned.

Most African central banks in African countries, such as Egypt and South Africa, have either hiked or kept borrowing costs unchanged amid lingering inflation concerns.