Africa-Press – Uganda. The Bank of Uganda (BoU) has maintained the Central Bank Rate (CBR) at 9.75%, citing steady economic growth, subdued inflation, and improving domestic conditions, while remaining cautious of persistent global risks.
The decision, announced by Governor Michael Atingi-Ego on Monday, November 10, 2025, followed a meeting of the Monetary Policy Committee (MPC). It reflects the central bank’s confidence in the economy’s resilience and its commitment to maintaining price stability.
“The decision underscores the BoU’s commitment to containing inflation while supporting sustainable economic growth in a dynamic macroeconomic environment,” Governor Atingi-Ego said. “We remain vigilant and ready to act should risks to price stability or financial conditions intensify.”
Uganda’s inflation has remained below the medium-term target of 5%, supported by prudent monetary policy, a stronger exchange rate, and stable energy prices. Over the past year, headline inflation averaged 3.6%, while core inflation stood at 3.9%.
In October 2025, headline inflation eased to 3.4%, down from 4.0% in September, driven by declines in both core and food crop prices.
Core inflation fell to 3.4% from 4.0%, reflecting lower costs in education, accommodation services, and other goods.
Food crop inflation moderated to 6.1% from 7.4%, supported by favourable weather conditions, while Energy, Fuel, and Utilities (EFU) inflation edged slightly higher to 0.1% from -0.1%.
According to Atingi-Ego, the easing inflation trend reflects the effectiveness of the central bank’s monetary policy stance.
“We are encouraged by the consistent decline in inflation, which demonstrates the impact of disciplined policy and favourable domestic conditions,” he said.
The MPC slightly revised its inflation outlook downward, projecting core inflation to range between 4.0% and 4.5% in FY2025/26, compared to an earlier forecast of 4.5–4.8%. This keeps inflation comfortably below the 5% medium-term target.
The committee noted that inflation risks remain mixed. Upside risks include global geopolitical tensions, adverse weather affecting agriculture, exchange rate pressures, and stronger domestic demand.
Downside risks include continued capital inflows from the oil sector, favourable weather boosting food supply, and easing global monetary conditions reducing imported inflation.
Uganda’s economy grew by 6.3% in FY2024/25, up from 6.1% the previous year, driven by strong performance in agriculture and industrial activity.
Rising consumption and investment further supported growth.
High-frequency indicators point to continued momentum in FY2025/26, with GDP expected to expand between 6.5% and 7.0%, and to average around 8% in the medium term.
“The economy remains on a firm recovery path, supported by increased investment, rising consumption, and ongoing structural reforms under the Tenfold Growth Strategy,” Atingi-Ego noted.
The growth outlook is anchored on Uganda’s Tenfold Growth Strategy, which is unlocking opportunities in agriculture, infrastructure, and extractive industries.
Reflecting this strong momentum, a major global credit rating agency recently upgraded Uganda’s outlook to positive from stable, citing improved fundamentals compared to regional peers.
The MPC maintained that the current CBR of 9.75% remains appropriate to keep inflation near the target while supporting growth.
The CBR band remains at ±2 percentage points, with the rediscount and bank rates held at 12.75% and 13.75%, respectively.
Governor Atingi-Ego reaffirmed that future policy decisions will be guided by economic data and evolving global conditions.
“Our monetary policy will continue to be data-driven. We are prepared to adjust if inflationary pressures re-emerge or if global developments significantly alter the domestic outlook,” he emphasized.
The central bank’s stance reflects growing optimism in Uganda’s macroeconomic stability, balancing inflation control with sustained growth as the country positions itself for stronger expansion in the years ahead.
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