The Central Bank of Uganda kept its benchmark interest rate at 10 percent on February 7th 2019, saying the inflation outlook for the near-term has improved, largely due to a relatively stronger currency and a good crop harvest. However, risks to the outlook remain elevated and inflation is expected to converge to the target of 5 percent in the medium-term. The annual inflation rose to 2.7 percent in January from 2.2 percent in the prior month. The bank projects the economy to expand by 6.3 percent in 2018-19 and to grow steadily over the coming years. Interest Rate in Uganda averaged 13.08 percent from 2011 until 2019, reaching an all time high of 23 percent in November of 2011 and a record low of 9 percent in February of 2018.
Interest Rate in Uganda is expected to be 10.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Uganda to stand at 7.50 in 12 months time. In the long-term, the Uganda Interest Rate is projected to trend around 6.75 percent in 2020, according to our econometric models.