It is the fifth time in a row that the bank has held the rate steady.

Inflation was 2.6pc year-on-year in July from 3.4pc in June, while core inflation was 3.5pc from 4.9pc in June.

Bank of Uganda Governor Emmanuel Tumusiime-Mutebile said economic growth in 2019/20 (July-June) was projected at 6-6.3pc also supported by strong domestic demand conditions and improved agriculture performance.

He however said there were downside risks to growth.

"Weather related constraints to agricultural production and delays in implementation of public investment programmes could dampen economic activity," he told a news conference.