Uganda Central Bank Raises Rate to 12 Per Cent Amid Inflation Fears

The Bank of Uganda increased its Central Bank Rate (CBR) to 12 per cent, citing a weakening shilling and rising fuel prices as key drivers of inflation concerns. Governor Michael Atingi-Ego attributed the move to escalating global conditions, particularly Middle East conflicts, which have strained Uganda’s exchange rate and import costs.

The Bank of Uganda previously set the CBR at 12 per cent on April 8, 2015, after raising it from 11 per cent amid inflation and shilling depreciation worries. The current increase could heighten commercial bank loan costs as the central bank aims to curb spending and stabilize prices. The rate has since climbed further following the 2015 adjustment.