The Bank of Uganda kept its benchmark interest rate unchanged at 9.75% on May 14, 2026, marking the seventh consecutive meeting without adjustment. Policymakers stated that the current monetary policy stance remains appropriate, even as the conflict in the Middle East heightens inflationary risks and weighs on Uganda’s economic outlook due to uncertainty about the conflict’s duration and intensity.
Headline inflation rose to 3.0% in April from a more than two-year low of 2.8% in March, remaining below the medium-term target of 5%. The Monetary Policy Committee (MPC) judged that inflation is likely to increase moderately in the second half of 2026 before stabilising around the medium-term target.
In March 2026, the central bank also raised the Cash Reserve Requirement (CRR) from 9.5% to 11% to manage liquidity in the banking system and help keep inflation expectations anchored.
