Tuesday February 13 2018
Uganda Interest Rate at 9.00 percent
The Bank of Uganda cut its benchmark interest rate by 50 bps to 9.0 percent at its February 2018 meeting, saying a cautious easing of monetary policy is needed to strengthen the economic growth momentum and boost private sector credit growth given the target inflation. Policymakers added that economic activity strengthened in 2017 and the growth outlook is expected to be around 5.0 percent and 5.5 percent for 2017/2018 fiscal year and at an average of 6.3 percent over the next five years. In addition, inflation remains subdued: annual inflation decreased in January of 2018 to 3.0 percent from 3.3 percent, mainly due to food prices. The outlook for inflation remains similar to the previous meeting, however for the 12-months horizon it is lower by about 1 percent, mostly due to lower food prices. Inflation is expected to increase gradually as the economy strengthens.