The central bank of Uganda raised its key central bank rate by 100bps to 10 percent on October 3rd 2018, saying inflation is on an upward trajectory and core inflation is seen rising above the 5 percent, amid a rapid increase in oil prices, a weaker currency and indirect taxes. The inflation was 3.7 percent in September, compared to 3.8 percent in August and core inflation rose to 3.9 percent from 3.5 percent. Policymakers added that the economy is expected to remain on a steady growth path, supported by robust domestic demand, public infrastructure investment, improving agricultural productivity and a recovery in FDI. Interest Rate in Uganda averaged 13.27 percent from 2011 until 2018, 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.