BoU kept Uganda’s Central Bank Rate (CBR) at 9.75%, signalling steady support for the economy.
The Governor announced the decision on Monday after the Bank reviewed the latest economic data, showing confidence that current policies can nurture growth while controlling inflation.
The Bank has maintained the rate since October 2024, demonstrating its commitment to policy continuity.
Consequently, businesses and households can plan borrowing and investments with greater certainty, which strengthens overall economic confidence.
Inflation Remains Subdued
Inflation rose slightly to 3.2% year-on-year in January, up from 3.1% in December, but it still remains below the 5% medium-term target.
Stable food prices and smoother supply chains have helped the Bank keep underlying price pressures in check, allowing it to maintain an accommodative stance.
Read Also: FG Launches App To Boost Nigerian Women’s Skills, Finance
Moreover, the BoU emphasised that the current inflation outlook lets it support economic growth while safeguarding price stability.
Strong domestic agricultural output, coupled with favourable global price trends, contributed to the subdued inflation environment.
Regional Contrast
Nevertheless, the Bank continues to monitor global risks, including volatile commodity markets, geopolitical tensions, and foreign exchange fluctuations.
By taking a cautious approach, it can adjust policies if conditions change without disrupting the economy.
Meanwhile, Uganda’s monetary stance differs sharply from Nigeria, where high inflation and currency pressures forced the Central Bank of Nigeria to tighten monetary measures.
Nigeria kept its rate at 27% and adjusted interest rate corridors to manage liquidity.
By holding the CBR steady, the BoU signals confidence in its strategy: balancing growth and inflation control.
For Ugandans, this approach keeps borrowing affordable, stabilises prices, and supports sustainable economic expansion.
