Ugandan shilling steady on rate hold expectations

KAMPALA: The Ugandan shilling was steady on Friday, as traders bet the central bank will maintain interest rates at a policy meeting on Monday, keeping private sector credit costly and demand for dollars scarce.

At 1122 GMT, commercial banks quoted the currency at 2,521/2,526, barely changed from Thursday's close of 2,520/2,525.

"The shilling is largely benefiting from the common sentiment that the central bank will likely keep its rate at 12 percent," said Ahmed Kalule, trader at Bank of Africa.

Statistics office data on Thursday showed year-on-year inflation was 8.1 percent in October, falling compared to September but still relatively high.

Analysts said the data was likely to discourage the central bank from easing rates, pointing to core borrowing costs staying at 12 percent.