Uganda central bank holds lending rate for third time in a row

KAMPALA: Uganda’s central bank maintained its key lending rate at 9.75% for the third monetary policy meeting in a row on Tuesday amid heightened global risks to the inflation outlook.

Core inflation rose to 3.9% in annual terms to April from 3.6% in March, moving closer to the bank’s medium-term target of 5%.

The Bank of Uganda’s Governor Michael Atingi-Ego said the Monetary Policy Committee (MPC) considered the current policy stance appropriate to maintain inflation within the target while supporting sustainable economic growth.

“In light of the prevailing domestic and global uncertainties and the elevated risks to the inflation outlook, the MPC decided to maintain the Central Bank Rate,” Atingi-Ego told a press conference.