Uganda central bank holds main lending rate at 10pc

KAMPALA: Uganda's central bank held its benchmark lending rate at 10 percent on Wednesday saying the outlook for inflation had improved.

Policymakers raised rates for the first time in three years in October, citing concerns about rising inflationary pressures.

"(The) 12-month ahead inflation forecast has improved slightly, relative to October forecasts," Emmanuel Tumusiime-Mutebile, the bank's governor, told a news conference.

Core inflation, which the bank focuses on, edged down to 3.4 percent last month from 3.5 percent the previous month. The rate was expected to peak at between 6-6.5 percent in the second half of next year, lower than the previous forecast, the governor said.