FX.co ★ Uganda Leaves Key Policy Rate at 9.75%

The Bank of Uganda left its benchmark interest rate unchanged at 9.75% at its August 2026 meeting, extending its hold for an eighth consecutive decision. Policymakers noted that inflationary pressures remained largely contained despite rising oil prices. Annual inflation increased to 4% in July — its highest level since September 2025 — up from 3.7% in June, but remained below the central bank’s 5% medium-term target. At the same time, the economy continued to show resilience, with growth projected to strengthen to 7%–7.5% in FY2026/27, which began in July, compared with an estimated 6.4% in FY2025/26.