Africa-Press – Uganda. The Deputy Governor of the Bank of Uganda Micheal Atingi Ego says in the current monetary policy committee’s assessment inflation will continue decelerating and converge to the target of 5 per cent by the end of 2023.
Atingi Ego attributed this to the low energy prices and improved global supply chains. This is as he unveiled the Monetary Policy Statement of October 2023 with the Central Bank rate maintained at 9.5%.
While the economic conditions seem to be unforgivingly hard for business performance, the central bank says that inflation is expected to continue decelerating due to factors like the improved low energy prices in the country.
“The inflation outlook has changed from the August 2023 forecast round, the downward trend in inflation Is predicted to continue in the coming months due to lower imported inflation further easing of food crop prices and subduing aggregate demand”, Atingi Ego said.
Despite the recent increase in fuel pump prices, the central bank says annual inflation has continued to moderate, reflecting the implementation of appropriate monetary and fiscal policy.
Economic growth is projected to remain strong at 6% in the financial year 2023/2024 to 7% in the medium term due to continued recovery in services and industry sectors. However economic Activity will be boosted by investment in the extractive industries financed by foreign direct investment and higher export earnings.
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