In a move reflecting strategic caution amidst ongoing global economic uncertainties, Uganda's central bank has opted to keep its benchmark interest rate unchanged at 9.75%. The decision, updated on December 5, 2024, marks a continuation of the monetary policy stance that has persisted since the previous setting.
Analysts had anticipated minimal fluctuations due to the stable outlook of Uganda's financial systems and the moderate inflation levels that currently adhere to the central bank's long-term targets. By maintaining the interest rate, Uganda aims to balance economic growth with inflation control, ensuring that lending remains accessible while keeping consumer prices in check.
This neutral approach indicates confidence in the current economic trajectory and underscores the central bank's commitment to fostering a stable macroeconomic environment to attract investment and support domestic production. As global markets remain volatile, Uganda continues to prioritize economic stability over aggressive monetary interventions.
